All categories

3 years ago

In the books of seller, is deducted from the invoice price when the buyer pays earlier or on the date/term stipulated

Business

1 answer:

Nutka1998 [239]3 years ago

7 0

Answer:

In the books of seller, cash discount is deducted from the invoice price when the buyer pays earlier or on the date/term stipulated

Explanation:

An early payment discount or cash discount is the reduction in invoice price due to payment before the due date.
A number of factors should be considered to see how much discount should be provided . Some of them are: check the cash discount offered by competitors, and check the payment history of the customer.
This strategy helps close the gap in cash flow and boost the working capital.

You might be interested in

Why are jellyfish so jellyish

Mandarinka [93]

Jellyfish have very simple bodies - they don't have bones, a brain or a heart. they consist of three basic layers. the outer layer, called the "epidermis," contains the nerve net. the middle layer is made of "mesoglea," the thick, elastic stuff that looks like jelly

6 0

3 years ago

Sarah and Luke each purchased $125 of merchandise from Owens Grocers on account. The terms of both sales were 1/7, n/30. Account

Tatiana [17]

Answer:

Sarah inventory $ 123.75

Luke inventory $ 125.00

Explanation:

Sarah

125 dollars x 1% discount = 1.25 dollars

Inventory:

125 nominal - 1.25 discount = 123.75

Sarah will enter the inventory for the price it paid to acquire it which is 123.75

Luke

As look paid after the discount period the inventory will be valued at nominal:

125 dollars nominal

the charge is considered interest expense it will not be capitalize through inventory.

7 0

3 years ago

Brian invests $11,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the compound amount (in $) for hi

Katena32 [7]

Answer:

The important thing to remember here is that the interest is compounded semi annually, which means twice a year. When the 1st interest is compounded, the second interest is calculated on that new amount.

(11,500 + (11,500×6%)) = $ 12,190

(12,190 + (12190×6%)) = $ 12921.40

Explanation:

4 0

3 years ago

The properly marked source document states:

Mariana [72]

Answer:

B. Contained in

Explanation:

Base on the scenario been described in the question, the concept that is used to derivatively classify the statement in the new document is contained in

Contained in can be said to a classified statement in a new document

4 0

3 years ago

) Prestwich Company has budgeted production for next year as follows: First Quarter Second Quarter Third Quarter Fourth Quarter

grigory [225]

Answer:

165,000 pounds ($495,000)

Explanation:

To determine the budgeted purchases of material A in pounds for the second quarter, prepare a Materials Purchases Budget as follows :

Materials Purchases Budget

Pounds

Materials Required for Production (80,000 x 2) 160,000

Add Closing Materials Inventory (90,000 x 2 x 25%) 45,000

Total Materials 205,000

Less Opening Materials Inventory (80,000 x 2 x 25%) (40,000)

Material Purchases 165,000

Cost per unit $3

Budgeted Materials Cost $495,000

6 0

3 years ago