1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
zlopas [31]
3 years ago
8

On August 1, our company purchases $1,000 worth of merchandise inventory on credit with the terms 2/10, n/30. What is the amount

we would credit to cash if we pay this invoice on August 12?
a. $1,000
b. $998
c. $990
d. $980
Business
1 answer:
vampirchik [111]3 years ago
7 0

Answer:

a) $1,000

Explanation:

Early Settlement Discount

This form of quotation is common with suppliers offering their customers deferred payment arrangement in a sale contract. Usually, under this arrangement customers are allowed to purchase goods on credit and settle their acccount at a specified  later date.

However, to encourage customers to pay up their outstanding earlier than expected, suppliers do offer early settlement discount as incentives to induce prompt payment.

A quotation of 2/10, n/30

This implies that the customer is a given a 30-day period from the date of purchase within which he is expected to settle his account. However, if he does so within the next 10 days of purchase he will be given a 2% discount.

<em>Applying this to the question, the purchase date is August 1, the the latest date for which account is settle to qualify for early settlement discount will be 11 days i.e (1+10) .</em>

Since the payment will be made on August 12, no cash discount will received. Therefore, a payment of gross amount of $1,000 would be credited to the cash account.

You might be interested in
What are the features of a corporation? The chief distinguishing factor of a corporation is its . An investor who purchases stoc
Elza [17]

1. What are the features of a corporation?


A corporation is a lawful entity that is independent from the people who possess it. As such, after the enlistment of a corporation, it is a different develop according to the law.A partnership is a legitimate element that is discrete and particular from its proprietors. Corporations appreciate the greater part of the rights and duties that an individual has: enter contracts, advance and acquire cash, sue and be sued, enlist workers, claim resources and make good on government expenses.  


2. The chief distinguishing factor of a corporation is its <u>"limited liability".</u>


The head recognizing element of a corporation is its limited liability. The proprietors have an immediate case on the enterprise's benefits in direct relationship with their responsibility for. In any case, their liabilities are restricted to their interest in the enterprise. Along these lines, if the enterprise goes bankrupt, the proprietors are not in charge of its obligations and different commitments. An organization has the chance to exchange its stocks in the money related markets as regular stock once it has finished an initial public offering (IPO).  


3. An investor who purchases stock in a corporation becomes a<u> "shareholder"</u> in that corporation.


An investor who buys stock in an enterprise turns into an shareholder in it, yet does not endure any liabilities or have any assets in danger past his or her unique speculation. A shareholder, normally alluded to as an investor, is any individual, organization, or foundation that possesses no less than one offer of an organization's stock. Since shareholders are an organization's proprietors, they receive the rewards of the organization's triumphs as expanded stock valuation. In the event that the organization does inadequately and the cost of its stock decays, nonetheless, investors can lose cash.

5 0
3 years ago
Read 2 more answers
Providers cannot maintain inventories of their services, leading them to vary prices according to demand. For example, most hote
hram777 [196]

Answer:

Perishability

Explanation:

Perishability describes how business services cannot be stored. As we all know, we've defined services as offering of an intangible commodity for sale. This intangible commodity can neither be stored, saved, returned or resold after they've been used. Thus, perishability in terms of services refers to how businesses cannot be stored for sales in the future. In this case, hotels tend to charge less during other times of the year as they cannot store their services to be rendered only in the holiday times of the year.

5 0
3 years ago
Can somone do a project for me
Romashka-Z-Leto [24]

Yes for sure

What is it? ?

5 0
3 years ago
1. The purpose of preparing a direct materials budget is to ________. a. allocate the cost of raw materials to production depart
worty [1.4K]

Answer:

1. Option c is correct option.

2. Option b is correct option.

Explanation:

Part 1. Direct material budget is prepared for  estimating the quantity of raw materials to be purchased. Following is the formula used for the computation of direct material budget:

D. Raw Material required to be purchased = Raw Material required for production + Desired closing Raw material for the last year - Opening Raw Material

Part 2. The desired ending raw material inventory for the last period.

And this is evident from the formula in the part 1 which tells that the desired closing raw material is that of the last year.

6 0
3 years ago
How are manufacturers trying to reverse or counteract the negative environmental impacts of manufacturing? (Select all that appl
zzz [600]

The manufacturers are trying to counteract the negative environmental impacts of manufacturing by:

  • reducing and eliminating waste
  • establishing green initiatives

<h3>How does manufacturing affect the environment?</h3>

The emission of carbon and waste from the manufacturing plant plays a part in the concentration of greenhouse gases on earth.

However, the manufacturers are adopting the process of reducing & eliminating waste and establishing green initiatives to minimize its pollution of the environment.

Therefore, the Option B and E is correct.

Read more about environmental impact

<em>brainly.com/question/27080910</em>

8 0
2 years ago
Other questions:
  • A user has a credit card–sized card used to prove her identity with a pin. what is this card called?
    9·1 answer
  • Good communication skills are important only for employees such as salespeople who directly with customers.
    7·1 answer
  • On march 12, masterson company, inc. sold merchandise in the amount of $7,800 to forsythe company, with credit terms of 2/10, n/
    7·1 answer
  • Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 350,000 Variable expenses 210,000 Con
    7·1 answer
  • Why would you want to know your net worth?
    9·1 answer
  • Suppose the central bank in your country has stability of the GDP growth rate as its primary goal. Faced with a choice of having
    10·1 answer
  • Which of the following below is an example of a capital expenditure? Group of answer choices replacing an engine in a company ca
    12·1 answer
  • Concord has the following inventory information. July 1 Beginning Inventory 30 units at $19 $570 7 Purchases 80 units at $18 144
    10·1 answer
  • Which of the following are properties of a savings account? Select all that apply.
    11·2 answers
  • Following information relates to Acco Co.
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!