1. A buyer received an invoice for P6,000 dated June 10. and the buyer paid the invoice within the discount period, what amount will the seller receive? a. P6,000 b. P5,880- c. P4,800 d. P 120

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter22: Providing And Obtaining Credit
Section: Chapter Questions
Problem 2Q
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1. A buyer received an invoice for P6.000 dated June 10. If the terms åré 2/10, n/30
and the buyer paid the invoice within the discount period, what amount will the
seller receive?
c. P4,800
а. Р6,000
b. P5,880.
d. P 120
2. The purchases discount account is a contra account to
a. accounts payable.
b. purchases.
C. sales.
d. sales discount.
3. When a seller of merchandise allowed a customer a reduction from the original
price for defective goods, the seller will issue to the customer a
a. credit memorandum.
b. debit memorandum.
c. official receipt.
d. sales invoice.
4. When the seller advances the transportation costs and the terms of sale are FOB
shipping point, the seller records the payment of the transportation costs by
debiting
a. accounts payable.
b. accounts receivable.
C. sales.
d. transportation in.
5. The account that appears in the chart of accounts for a merchandising entity but not
for.a service entity is
a. accounts receivable.
b. accumulated depreciation.
c. advertising expense.
d. sales returns and allowances.
6. Olive Valenzuela Traders purchased merchandise from San Jose Suppliers for P3,600
list price, subject to a trade discount of 25%. The goods were purchased on terms of
2/10, n/30, F.O.B. destination.
Valenzuela returned P400 (list price) of the merchandise to San Jose and later pald
the amount due within the discount period. The amaunt pajd is
Valenzuela paid P100 transportation costs:
а. Р2,254.
b. P2,252.
c. P2,246.
d. P2,352.
Transcribed Image Text:1. A buyer received an invoice for P6.000 dated June 10. If the terms åré 2/10, n/30 and the buyer paid the invoice within the discount period, what amount will the seller receive? c. P4,800 а. Р6,000 b. P5,880. d. P 120 2. The purchases discount account is a contra account to a. accounts payable. b. purchases. C. sales. d. sales discount. 3. When a seller of merchandise allowed a customer a reduction from the original price for defective goods, the seller will issue to the customer a a. credit memorandum. b. debit memorandum. c. official receipt. d. sales invoice. 4. When the seller advances the transportation costs and the terms of sale are FOB shipping point, the seller records the payment of the transportation costs by debiting a. accounts payable. b. accounts receivable. C. sales. d. transportation in. 5. The account that appears in the chart of accounts for a merchandising entity but not for.a service entity is a. accounts receivable. b. accumulated depreciation. c. advertising expense. d. sales returns and allowances. 6. Olive Valenzuela Traders purchased merchandise from San Jose Suppliers for P3,600 list price, subject to a trade discount of 25%. The goods were purchased on terms of 2/10, n/30, F.O.B. destination. Valenzuela returned P400 (list price) of the merchandise to San Jose and later pald the amount due within the discount period. The amaunt pajd is Valenzuela paid P100 transportation costs: а. Р2,254. b. P2,252. c. P2,246. d. P2,352.
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