Chapter 41.Identify the statements below which summarize what cash discounts are:a.A seller views a cash discount as a sales discount.b.Cash discounts are described in credit terms.c.Sellers can grant a cash discount to encourage buyers to pay earlier.d.A reduced payment applies to the discount period.e.A buyer views a cash discount as a purchase discount.2.Sales Discounts is a contra- _________ (expense/revenue/asset) account and is increasedwith a ____________ (debit/credit). Show Get answer to your question and much more 3.Jo's market sold 1,000$ of goods on credit with terms of 2/10,n/30. The original cost ofthe goods was $400. Required journal entry to record the sale and cost of the sale wouldbe: Get answer to your question and much more 4.Components of a merchandiser's multi-step income statement are shown below. In whichorder would they appear on the statement? Get answer to your question and much more 5.On Dec 7th, Toys R fun purchased 1,000$ of merchandise with terms 2/10, n/30. Ifpayment is made on December 16th, demonstrate the required journal entry for Toys Rfun to record the payment under the perpetual inventory system. Get answer to your question and much more 6.Dogs R US uses the perpetual inventory system to account for its merchandise. Acustomer returned merchandise. Assuming that the purchase was originally bought oncredit for $400 with a cost to Dogs R US of $100, demonstrate required journal entry ofDogs R US to record the return by selecting all of the correct actions below. (Check allthat apply.)a.Credit Accounts Receivable $400.b.Debit Merchandise Inventory $100.c.Debit Sales Returns and Allowances $400.d.Credit Cost of Goods Sold $100. Chapter 5Which of the following statement below are correct regarding cost goods sold? Get answer to your question and much more Merchandise inventory can be described as ? Get answer to your question and much more Merchandise inventory that is still available for sale in considered a(n) assentand is reported on the balance sheet and merchandise that is sold during theperiod is considered a(n) expense and reported on the income statement .Review the following statement below and select the one that accuratelydescribes a perpetual inventory system? Get answer to your question and much more X-mart purchased 300 of merchandise on account. Demonstrate the journalentry to record this transaction, assuming the perpetual inventory system isused ? Get answer to your question and much more
Cost of goods sold is characterized by which of the following statements?(Check all that apply.) Get answer to your question and much more Review the following credit terms and identify the one that states that thebuyer will receive a 3% discount if the payment is made within 15 days.Otherwise, full payment is expected within 45 days of the invoice date. Get answer to your question and much more 15. Identify the two types of inventory systems from the choices below. - Perpetual inventory system and periodic inventory system 16. X-Mart purchased $300 of merchandise and paid immediately. Demonstrate the journal entry to record this transaction, assuming the perpetual inventory system is used. - Debit Merchandise Inventory $300; credit Cash $300. 17. Credit terms of 1/10, net 30 means. - The buyer will receive a 1% discount if they pay within 10 days of the date of the invoice. 18. Review the following credit terms and identify the one that states that the buyer will receive a 3% discount if the payment is made within 15 days. Otherwise, full payment is expected within 45 days of the invoice date. - 3/15,n/45 19. A cash discount can be summarized as a discount given to buyers to encourage them to pay earlier. 20. The discount period is the time between the invoice date and a specified date on which the payment amount owed can be reduced because of early payment. 21. X-Mart purchased $300 of merchandise on account. Demonstrate the journal entry to record this transaction, assuming the perpetual inventory system is used. - Debit Merchandise Inventory $300; credit Accounts Payable $300. 22. Credit terms of n/15 EOM were printed on an invoice. Explain what this means. - The credit terms stand for net 15 days after end of month. 23. Explain what the credit terms of 2/10, n/30 mean. - The full payment is due within a 30-day credit period. - The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date. 24. Identify the statements below which summarize what cash discounts are. - Cash discounts are described in credit terms. - A seller views a cash discount as a sales discount. - Sellers can grant a cash discount to encourage buyers to pay earlier. - A buyer views a cash discount as a purchase discount. - A reduced payment applies to the discount period. 25. Review the following statements and select the one that best describes a discount period. - The discount period is the time period in which a discount may be taken by the buyer. 26. To record this transaction, Toys R Fun's accountant would debit the merchandise inventory account and credit the cash account. 27. Which of the following costs are included in merchandise inventory? - Shipping fees charged by the vendor - Purchase costs - Taxes assessed on the merchandise - Costs necessary to ready the merchandise for sale 28. On May 14, X-Mart purchased $500 of merchandise with terms of 3/15,n/40. If payment is made on May 28, calculate the purchase discount that may be taken by X-Mart. - $15 (Reason: $500x.03=$15) 29. On Dec. 7, Toys R Fun purchased $1,000 of merchandise with terms of 2/10,n/30. If payment is made on December 16, demonstrate the required journal entry for Toys R Fun to record the payment under the perpetual inventory system. What is a cash discount quizlet?cash discount. savings that result from early payment by taking advantage of discounts offered by the seller; discount is not taken on freight or taxes.
Are cash discounts described in credit terms?Cash discounts aren't reductions in the agreed sales price of the goods or services at the time of the transaction – they are a reduction in the amount to be paid by a credit customer (to whom you have given credit terms) if that customer pays within a specified time period.
Which of the statements below summarizes what the acid test ratio measures quizlet?Which of the statements below summarizes what the acid-test ratio measures? The acid-test ratio measures a merchandiser's ability to pay its current liabilities.
What is a cash discount on sales taken by a customer?Cash discounts refer to an incentive that a seller offers to a buyer in return for paying a bill before the scheduled due date. In a cash discount, the seller will usually reduce the amount that the buyer owes by either a small percentage or a set dollar amount.
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Identify the statements below which summarize what cash discounts are.
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