Down payment refers to a. A trade discount b. An installment payment C. A partial payment d. A cash discount
Q: The portion of the selling price paid by the customer at the time of purchase is called O a.…
A: Part amount of selling price is paid by the buyer immediately at time of buying and rest is paid in…
Q: Define Sales discounts.
A: Merchandising businesses: Merchandising companies which buy goods from suppliers, or manufacturers,…
Q: the amount recorded as a sale , and the actual amount collected when paid within the discount…
A: Trade discount is the discount which is received by the buyer of the goods on the purchase of goods…
Q: The cash discount also known as purchase discount or sale discount is given to customers for: a.…
A: The cash discount, often known as purchase discount or sale discount, is a type of discount.
Q: Select the term that best fits each of the following definitions and descriptions. a. Notes…
A: There are varied terms used in accounting in day-to-day operations. They have a standard meaning…
Q: Identify which one of the following is also called as Fixed deposit account? a. Demand deposit b.…
A: Fixed deposit accounts are fixed deposit accounts have fixed MATURITY period and can be withdrawn…
Q: List price × trade discount rate = amount of trade discount. true or false
A: The question is related to true or false.
Q: What is the difference between a sales discount and a purchases discount?
A: The term sales discount is used by the seller, and the term purchase discount is used by the…
Q: Define Sale of Receivables.
A: Sales: A sale refers to the operating activity through which the company earns income by selling…
Q: the trade discount and trade discount rate.
A: List Price Net Price Trade Discount Trade Discount Rate 65.00 50.00 15.00 23.08% 115.00 98.00…
Q: Distinguish trade discounts and cash discounts.
A: Introduction: Discount: Discount is an expense to be shown in income statement. All expenses to be…
Q: Define discounts (in credit terms)
A: Discount in credit terms is a method utilized to understand receivables for deal with cash flow…
Q: How to calculate the list price? O a. List price = Amount of Discount/Rate of Discount O b. List…
A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…
Q: Cost of Trade Credit) Calculate the effective cost of the following trade credit terms where payment…
A: Cost of trade credit is cost of interest discount provided to customers.
Q: Define revolving credit agreement
A: Revolving credit agreement: A revolving credit is a lawful guarantee in which a bank agrees to lend…
Q: Define Trade discounts.
A: Business: It refers to a commercial activity involving buying and selling of a product or a…
Q: rms: credit transfer, dishonoured cheque, standing order and give examples, the purposes, advantage
A: Credit transfer can refer to: The transfer of money from one account to another, also called a wire…
Q: Difference between annuity and lump sum payment.
A: Time value of money: Time value of money refers to the concept that the value of money available at…
Q: Question The average collection period is the average amount of time that elapses from a credit…
A: Average Collection Period Average collection period is time allowed by the company to its debtors…
Q: al credit sales ts purchasing ivable has shi agement a ye
A: Receivables outstanding = 1710000×23/365= $107,753 Payables outstanding = 1710000×49.56%…
Q: If any discount is offered for early payment of invoice will be called as a. Cash discount b. Trade…
A: An early payment discount – also known as a prompt payment discount or early settlement discount /…
Q: Which form of payment is not considered as advance payment? A) Payment by wire transfer B)…
A: Documentry payment is not considered as advance payment because Documentary payment is a method of…
Q: Trade Discount and Cash Discounts
A: Trade discount Purchase price * Rate of trade discount Purchase price $2,000 Rate of trade…
Q: Define discount percentage (credit)
A: The discount rate is the amount paid on debit and credit card payments to a dealer for payment…
Q: calculate the discount date and the net date for the transaction.
A: Given that the invoice terms are 2/10 , n/45 That is if the invoice is paid in 10 days we get a…
Q: Cash Discounts. ISCoun
A: It is pertinent to note that cash discounts are given by debts for prompt payment of invoices .…
Q: The cash discount (also known as purchase discount) is given to customers for a. Frequent purchases…
A: Discount is known as allowance or reduction benefit is given to customers for their payment for…
Q: 1. How much is the trade discount? 2 When is the due date to pay the account? 3. What is the term of…
A: Trade discount is the discount which is received by the buyer on the goods which has been bought in…
Q: The entry to record accrued interest on a note receivable would include a: debit to Cash credit to…
A: Accrued interest is the amount of interest which is earned by the business but not yet received.
Q: 6) Which of the following are the normal baiances of Sales, Sales discounts, and Sales returms and…
A: Introduction: Accounting: Accounting is an art of recording , classifying and summarising and…
Q: Define each of the following terms: l. Stretching accounts payable; free trade credit; costly trade…
A: Trade credit is the outstanding due arising from sales or purchases made on credit. Accounts Payable…
Q: Credit entry in a nominal amount is
A: Credit entry in a nominal account is:- Cash account Debit Income and Gains account Credit
Q: punts receivable ipment umulated deprec tes payable
A: particulars amount particulars amount To rent expenses $45000 By service fee earned $177500 To…
Q: A-Receivable Financing 3. Identification. If the proceeds from discounting is less than the…
A: Discount with Recourse In Discount with recourse it is upto the decision from the bank to make the…
Q: loan, what amount of money will be required to pay the down payment, the origination fee and the…
A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount…
Q: For VAT and Percentage transactions, state when will be the deadline for the remittances
A: VAT is value added tax and it is indirect tax which means tax is paid by consumer of goods or…
Q: Calculate the simple interest note proceeds. calulate the simple discount note proceeds.
A: INTRODUCTION Simple interest note: Note receivable is the bill drawn on customer for the due amount…
Q: e list price of a product agreed betw anufacturer to a wholesaler? a. Mark up b. Trade discount c.…
A: Option B is the Correct Answer.
Q: The journal entry for recording the unexpired discount is: Dr Bills discounted Cr Interest and…
A: Unexpired discount also known as rebate on bill discounted refers to the interest or discount for…
Q: Trade accounts payable: * O Do not include purchases on an open- charge basis. O Are examples of…
A: The person from whom the business entity purchases are goods on a credit basis is known as Accounts…
Q: Describe the conditions that would make the use of advance-discounts appropriate.
A: Discount means a selling of goods or service below the price of goods. This reduction in price is…
Q: The purchase of good on credit require: O A. Amount of payment O B. Timing of payment O C. Credit…
A: Purchase of goods means when goods are bought or purchased from some other party. These goods can be…
Q: The buyer calls cash discount as a. Managing discount b. Purchase discount O c. Sales discount d.…
A: The buyer receives the discount on purchases.
Q: A discount granted to a customer for paying his account promptly O a. Cash Discount O b. Trade…
A: Discount price is the price offered to the buyer after deducting discount amount from the selling…
Q: The time period during which the invoice is paid is called: A. Rate of discount B. Discount period…
A: Invoice refers to a document representing the information about the amount owed by customers through…
Q: Define discount period (credit)
A: Credit period: Credit period is the maximum amount of time, expressed in days, provided by the…
Q: Calculate the cash discount and the net amount due the transaction (in $). Amount of Invoice Terms…
A: Credit terms includes terms & conditions related to discounts and interest or late fee…
Q: The "Allowance for sales discounts" account may be used under Select the correct response: O Net…
A: Solution: Allowance for sales discount is used when sales discount is accounted for using estimates…
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- Define each of the following terms: l. Stretching accounts payable; free trade credit; costly trade creditA can defined as a partial payment remunerated as an advance on the sales person's commission. O a. Draw O b. Purchase O c. Revenue O d. ChargeFor assets acquired on credit or by installment, the cost or fair value is equal to: A. cash purchase priceB. invoice priceC. installment priceD. list price
- A credit balance to a client's accounts payable account representing right to receive payment for delivery of goods should be properly classified as: A. Current LiabilitiesB.Non-Current LiabilitiesC. Trade ReceivablesD. Non-trade Receivables (Current)E. Non-trade Receivables (Non-Current)Choose the one correct answer. A credit balance to a client's accounts payable account representing right to receive payment for delivery of goods should be properly classified as: A. Current LiabilitiesB.Non-Current LiabilitiesC. Trade ReceivablesD. Non-trade Receivables (Current)E. Non-trade Receivables (Non-Current)A discount granted to a customer for paying his account promptly O a. Cash Discount O b. Trade Discount O c. Purchase Discount O d. Sales Discount
- Credit entry in a nominal amount isA. premium or discount and $? B. $?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