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1 year ago

_____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

1 answer:

7 0

Credit terms are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

<h3>What is the purpose of credit terms?</h3>

Credit terms are the payment requirements stated on an invoice. It is fairly common for sellers to offer early payment terms to their customers in order to accelerate the flow of inbound cash.

Credit means a loan, an agreement in which the lender (creditor) supplies the borrower with money, goods or services which is to be returned in future. Terms of credit apart from the rate of interest, collateral also includes documentation, mode of repayment.

To learn more about credit terms visit the link

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Alan Jackson invests $20,000 at 8% annual interest, leaving the money invested without withdrawing any of the interest for 8 yea

kondaur [170]

Answer:

a. $32,800

b. $37,019

c. $37,460

Explanation:

a. The computation of Total Amount Withdrawn by Alan when simple interest is shown below:-

Accumulated amount of money = Invested amount + (Rate of interest × Number of years)

= $20,000 + ($20,000 × 8% × 8)

= $32,800

b. The computation of Total Amount Withdrawn by Alan when annually Compounded is shown below:-

Accumulated amount of money = Invested amount × (1 + rate of interest)^Number of years

= $20,000 × (1 + 0.08)^8

= $20,000 × 1.85093

= $37,019

c. The computation of Total Amount Withdrawn by Alan when semi annually Compounded is shown below:-

Accumulated amount of money = Invested amount × (1 + rate of interest × Number of years ÷ 200)^16)

= ($20,000 × (1 + 0.08 × 8 ÷ 200)^16)

= $20,000 × 1.87298

= $37,460

Therefore we have applied the above formulas.

5 0

3 years ago

Five days after signing a contract to purchase a new timeshare in North Carolina, the buyer cancels the timeshare contract. Acco

dangina [55]

Answer:

Under north Carolina's laws, the developer must refund the buyer's money within a 30 day period since the purchase date. North Carolina law also sets a deadline of 5 calendar days to cancel a timeshare contract, so this buyer barely made it on time. A buyer cannot waive his right to cancellation, even if the option is not included in the contract.

6 0

2 years ago

Samson, Inc. reported the following information for the year: Service Revenue $ 40 comma 000 Operating Expenses 24 comma 000 Ne

agasfer [191]

Answer:

$2.29

Explanation:

The units cost per service is the ratio of the total operating expense to the total number of services provided during the year. Given that the Operating Expenses 24 comma 000 and the Number of Services Provided for the Year 10 comma 500,

the unit cost per service

= $24,000/10,500

= $2.285714286

To the nearest cents

= $2.29

6 0

2 years ago

On October 1, 2017, Vaughn, Inc., leased a machine from Fell Leasing Company for five years. The lease requires five annual paym

Alisiya [41]

Answer:

Explanation:

1.Amount to be paid Annually to fell leasing Company = $10,000.

Incremental rate of borrowing = 11%

Lease Period = 5 yrs.

2. Value of lease equipment as on 1st October 2017 i.e., date of lease.

= 10,000 * (PVOA) = (11* for 5 years)

=10,000 * 3.6959 (using -PVAF table)

= $ 36,959

Factors are used according to the table of PVAF

3.Lease liability as on 31-12-2017

= 10,000 * PVAD (11 * 4 years) [since 4 years in these)

= 10,000 * 3.44371

= $ 34,437.10

Lease liability as on 31st Dec 2018

= 10,000 * PVAD (11% 3 years) (still 3 yrs left as on 31-12 -2018)

= 10,000 * 2.71252 = $ 27,125.20

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3 years ago

Riverbed Corporation issued 1,900 shares of $10 par value common stock upon conversion of 950 shares of $50 par value preferred

masya89 [10]

Answer:

The answer is given below;

Explanation:

Preference stocks 950*50 Dr.$47,500

Paid in capital in excess of par-preference shares Dr.$ 13,300

(64-50)*950

Common Stocks 1,900*10 Cr.$19,000

Paid in capital in excess of par-common stocks Cr.$41,800

(64*950)-(1900*10)

8 0

2 years ago