Terrance recently started working at Gamers, Inc., as the Senior Accountant over Accounts Payable. Tom Simpson, Accounting
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Terrance recently started working at Gamers, Inc., as the Senior Accountant over Accounts Payable. Tom Simpson, Accounting Manager at Gamers, Inc., is expecting a large payment from one of their customers in the next few days. Tom plans to pay all the past due and current invoices when the payment is received. In preparation, he has asked Terrance to calculate some vendor payment amounts (for cash planning purposes) based on the exhibits provided.
1. What payment discount amount can be taken if ALL invoices on the accounts payable aging report are paid on June 30, 20X1? | |
2. What payment discount amount can be taken if ALL invoices on the accounts payable aging report are paid on July 7, 20X1 (instead of June 30, 20X1)? | |
3. As of July 7, 20X1, what amount of accounts payable is past due? | |
4. What is the gross amount of the June invoices only that should be included for payment on a June 30, 20X1, check run based on the new payment guidelines? (Assume all invoices with dates prior to June 1, 20X1 were paid). | |
5. For the preceding question, what is the discount amount that can be taken? |
Related Book For
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
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