FDN Trading recorded the following events involving a recent purchase merchandise: Received goods for P44,000, terms 3/10, n/30. Returned P400 of the shipment for credit. Paid P100 freight on the shipment on terms FOB Shipping Point.

FDN Trading recorded the following events involving a recent purchase merchandise: Received goods for P44,000, terms 3/10, n/30. Returned P400 of the shipment for credit. Paid P100 freight on the shipment on terms FOB Shipping Point.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please answer the question correctly. Thank you.

FDN Trading recorded the following events involving a recent purchase of
merchandise:
Received goods for P44,000, terms 3/10, n/30.
Returned P400 of the shipment for credit.
Paid P100 freight on the shipment on terms FOB Shipping Point.
Paid the invoice within the discount period.
How much is the net cost of purchases?

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