QUESTIUN In credit terms of 3/15, n 45, the “3” represents the a. number of days…
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Question “QUESTIUN In credit terms of 3/15, n 45, the “3” represents the a. number of days…”
QUESTIUN In credit terms of 3/15, n 45, the “3” represents the a. number of days in the discount period b. number of days when the entire amount is due c. percent of the cash discount d. full amount of the invoice QUESTION 8 Titans Co. purchases merchandise with a catalog list price of $30,000. The retailer receives a 30% trade discount and credit terms of 210, n. 30. What amount should Titans debit to the Inventory account? a. $20,580 b. $29,400 C. $21.000 d. $30,000 QUESTION 9 A voucher is usually supported by a. a supplier’s invoice b. a purchase order О с. c. a receiving report d. all of these Click Save and Submit to save and submit. Click Save All Answers to save all ans.
Answer
Question 7 | |||||||
Answer: Option (c), – Percentage of the cash discount | |||||||
Credit terms 3/15, n/45 mean that if payment is made within 15 days, the payer will receive a | |||||||
A 3% discount. Otherwise, he would have had to pay the entire amount within 45 days. | |||||||
The percentage of cash discount is represented by 3 in this example. | |||||||
Question 8 | |||||||
Answer: Option (a) – $ 20,580 | |||||||
Catalog price | 30,000 | ||||||
Less: Trade discount @ 30% | (9,000) | ||||||
21,000 | |||||||
Less: Cash discount @ 2% | (420) | ||||||
Debit to inventory | 20,580 | ||||||
Question 9 | |||||||
All of these are answered by Option (d). | |||||||
A source document is required to support a voucher. Source documents include suppliers invoice, | |||||||
Purchase order or receiving report |
Conclusion
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