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Firdavs [7]
3 years ago
8

Simmons sold merchandise to Drafke for $5,000 with payment terms of 2/10, n/30. Two days later, Drafke returned two of the units

and received account credit in the amount of $2,000. If Drafke pays his account in full within ten days of the invoice date, what is the amount of the sales discount?
Business
1 answer:
ioda3 years ago
8 0

Answer:

The amount of the sales discount is $60.

Explanation:

The with payment terms of 2/10, n/30 imply that Drafke will enjoy 2% discount if he pays within 10 days; but after the first 10 days, the full invoice amount payable will be due for payment in 30 days without the 2% discount.

From the question, we have:

Total credit sales = $5,000

Sales return = $2,000

Net credit sales = Total credit sales - Sales return = $5,000 - $2,000 = $3,000

If Drafke pays his account in full within ten days of the invoice date, he will enjoy the 2% discount rate. Therefore, we have:

Discount amount = Net credit sales * Discount rate = $3,000 * 2% = $60

Therefore, the amount of the sales discount is $60.

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When calculating the Annual Percentage Rate, it is important to consider?
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A bond has a $1,000 par value, 20 years to maturity, and an 8% annual coupon and sells for $1,110. What is its yield to maturity
aleksandr82 [10.1K]

Answer:

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Explanation:

The yield to maturity or YTM is the yield or return that an investor can earn on the bond if the bond is purchased today and is held till the bond matures. The formula to calculate the Yield to maturity of a bond is as follows,

YTM = [ ( C + (F - P / n))  /  (F + P / 2) ]

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