1.3 REQUIRED Use the information given below to determine the cost (as a percentage, expressed to two decimal places) to Ascot Traders of not accepting the discount. INFORMATION Max Wholesalers granted credit terms of 60 days to Ascot Traders but the wholesaler is prepared to allow a discount of 2.5% if the account is settled within 15 days.
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- McEwan Industries sells on terms of 3/10, net 40. Total sales for the year are $1,912,500; 40% of the customers pay on the 10th day and take discounts, while the other 60% pay, on average, 66 days after their purchases. Assume 365 days in year for your calculations. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. a. What is the days sales outstanding? Round your answer to two decimal places. 43.6 $ b. What is the average amount of receivables? Round your answer to the nearest cent. Do not round intermediate calculations. days 228,452 c. What is the percentage cost of trade credit to customers who take the discount? Round your answers to two decimal places. 3.09 %Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/25, net 85, and 2.5/15, net 60, assuming that customers who do not take the discount a. pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places. Credit terms of APR TEAR 3/25, net 85 APR TEAR b. delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places. % % 3/25, net 85 2.5/15, net 60 Credit terms of % % % % 2.5/15, net 60 % %choose the letter of the correct answer Log Company’s credit sales are P300,000, and the collection period is 90 days. Cost is 70 percent of selling price. Determine Log's average investment in accounts receivable. a. P32,500.00b. P42,500.00c. P52,500.00d. P62,500.00e. P72,500.00
- Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places. Credit terms of 3/20, net 65 2.5/15, net 75 APR % % rEAR % % delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places. Credit terms of 3/20, net 65 2.5/15, net 75 APR % % rEAR % %If a supplier quotes you terms of 1.5% discount for payment of an account within 21 days or net 60 (1.5/21, N60) what is the effective interest rate if you do not pay until 60 days after receipt of the account?Credit terms with a new supplier are 2/10, net 30 If unable to pay within the discount period and pay the cash price, what is the Effective Cost of Trade Credit (EFF%) if paid in 20 days? Group of answer choices 87.2449% 74.4898% 105.4367% 109.0491% 76.6667%
- 4. The total current amount due to a purchase made by using credit card is P54,245.50, Based on the agreement the minimum required payment is 8.5% of the total amount due, If the client pays only the minimum requlred payment, a charge 2.5% of the remaining balance will be carried on to the next bill. If there are no purchases made for the next two manths and a charge of 2.5% is added every billing period, what is the required monthly bill for the next months? TIME/MONTH TOTAL AMOUNT DUE FOR MINIMUM REQUIRED THE MONTH PAYMENT FOR THE MONTHA supplier offers the following discounts: Trade discounts of 20% at list price and another cash of 3% if paid in full before the due date. The net amount paid by the customer within the discount period is 14,550. How much is the list price? Select the correct response: O 15,200 14,400 18,750 16,000What do the credit terms, 2/15, n/30 mean? Multiple Choice O A two percent discount can be deducted if the invoice is paid after the fifteenth day following the sale, but before the thirtieth day. A two percent discount can be deducted if the invoice is paid before the fifteenth day following the date of the sale. A fifteen percent discount can be deducted if the invoice is paid within two days following the date of sale. A two percent discount can be deducted for a period up to thirty days following the date of sale.
- QUESTION 1 Information about Calbee Company is provided below: Ending Accounts Receivable: $100,000 Total Credit Sales: $250,000 Beginning Allowance for Doubtful Accounts: $15,000 (Credit) Total Write-offs: $5.000 Calbee uses the percent of credit sales method. It estimates that 3% of credit sales will ultimately be uncollectible. What is the ending balance in the Allowance for Doubtful Accounts?Assume that Sohar pipers Cores LLC sold OMR 20000 pipes to the retailer with the credit terms of 2/10 , n/30. The retailer paid OMR 10000 within 10 days. From the following given options, identify the journal entry recorded by the company for the first payment made by credit customer. a. Dr Cash A/C OMR 9800, Dr Sales discount A/C OMR 200 and Cr Accounts receivables A/C OMR 10000 b. Dr Cash A/C OMR 10000 and Cr Accounts receivables A/c OMR 10000 c. Dr Accounts receivables A/C OMR 10000 and Cr Cash A/C OMR 9800, Cr Sales Discount A/C OMR 200 d. None of the given options Clear my choiceA supplier hands you an invoice for $47,000 with the terms 4/20, net 180. a. ) What is the effective annual cost (expressed as an APR) if you forgo the discount and pay after 180 days?b. )What is the effective annual cost (expressed as an APR) if you pay after 200 days?