If NetSolutions sells a customer some products on account (accounts receivable) and offers a discount for early payment of the customers accounts receivable within the credit period, the discount is called a _________________________________. Group of answer choices trade discount purchases discount sales discount sales allowance

If NetSolutions sells a customer some products on account (accounts receivable) and offers a discount for early payment of the customers accounts receivable within the credit period, the discount is called a _________________________________. Group of answer choices trade discount purchases discount sales discount sales allowance

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 3MC: Which of the following numbers represents the discount percentage applied if a customer pays within...

See similar textbooks

Similar questions

Kate Trading made an early payment to its suppliers to take advantage of the discount offered by the supplier. What account is most likely used for the discount that is being acquired by Kate Trading? cash discount trade discount sales discount purchase discount
Thinking about various payment terms for Accounts Payable, do you feel it is always valuable for a company to offer early payment discounts, and does this answer change based on the going prime rate?
What kind of discount is designed to encourage prompt payment from customers? ( O Cash Discounts O Trade Discounts O Nominal Discounts O Contractual Discounts
When offered with single trade discounts, discount series, and cash discount, would you avail of them right away? Why and why not ?
Question The average collection period is the average amount of time that elapses from a credit sale until the company can use the payment (collection) of the sale. True or false?
What is total price of the first invoice that activates the chain discount?
The cash discount (also known as purchase discount) is given to customers for a. Frequent purchases b. Bulk purchase c. Early and prompt payments d. Frequent sales
If any discount is offered for early payment of invoice will be called as a. Cash discount b. Trade discount c. No discount d. Any discount
Differentiate between free and costly trade credit.What is the formula for determining the nominalannual interest rate associated with a credit policy?What is the formula for the effective annual interestrate? How would these cost rates be affected if afirm buying on credit could “stretch” either the discount days or the net payment days—that is, takediscounts on payments made after the discountperiod or else pay later than the stated paymentdate?
DISCOUNTS Circle discounts you will offer to online customers: Quantity Cash Functional Seasonal Promotional Rebates Circle discounts you will offer to offline customers: Quantity Cash Functional Seasonal Promotional Rebates Account for any differences in discounts allowed to two customer groups:
Terminology Match each phrase with its definition. A. Sales discount B. Credit period C. Discount period D. FOB destination E. FOB shipping point F. Gross profit G. Merchandise inventory H. Purchases discount 1. 2. 3. 4. 5. 6. 7. 8. Goods a company owns and expects to see to its customers. Time period that can pass before a customer's full payment is due. Seller's description of a cash discount granted to buyers in return for early payment. Ownership of goods is transferred when the seller delivers goods to the carrier. Purchaser's description of a cash discount received from a supplier of goods. Difference between net sales and the cost of goods sold. Time period in which a cash discount is available. Ownership of goods is transferred when delivered to the buyer's place of business. 1
1. Which one of the following stores offers the best credit terms if you do not plan on taking the discount? STORE CREDIT TERMS A 1/10, net 20 2/10, net 10 1/15, net 45 2/15, net 30 2. What if you plan on taking the discount?