Credit Inventory because that $27.50The discount terms are 1/10, n/30 which suggests a 1% discount if paid within 10 days but the complete amount is due otherwise. Because the bill is paid on the tenth job (or sooner), the the person who lives gets the 1% discount. The balance early out is $3,000 much less the returned products of $250, or $2,750, minus the discount on the net amount. The discount ~ above $2,750 is $27.50, for this reason $2,722.50 is due. The accounting entry will certainly debit account Payable because that $2,750, credit transaction Cash for $2,722.50, and credit Inventory for $27.50.
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Cosmos Corporation offers the perpetual list system. The purchased $2,000 of merchandise on July 5 top top account. Credit transaction terms were 2/10, n/30. It changed $400 of the merchandise on July 9. ~ above July 21, it payment the supplier. I beg your pardon of the complying with is component of the journal entry Cosmos records once it pays the supplier?
Credit to Cash because that $1,600The discount terms space 2/10, n/30 which indicates a 2% discount if paid within 10 days, yet the full amount is due without a discount thereafter and payment is thought about overdue 30 work after the invoice date. Because the bill is payment after the 10-day discount period, the complete invoice lot minus the price the the returned items is due (i.e., $2,000 - 400 = $1,600). The entry to record the payment contains a debit accounts Payable because that $1,600 and credit Cash because that $1,600.
Starlight Corporation uses a perpetual inventory system. That purchased $3,000 of was on respectable 2 top top account. Credit terms were 1/10, n/30. It went back $250 the the goods on respectable 4. On respectable 12, it pays the supplier. I m sorry of the adhering to is part of the journal entry Starlight records once it payment the supplier?
Credit Inventory for $27.50The discount terms room 1/10, n/30 which indicates a 1% discount if payment within 10 days, yet the complete amount is due without a discount thereafter and payment is taken into consideration overdue 30 job after the invoice date. Due to the fact that the invoice is paid 10 work after the invoice date, the discount applies. Payment calls for paying the network purchase lessened by the discount (i.e., 99% x ($3,000 - 250) = $2,722.50). The discount is 1% of the bet purchase (i.e., 1% x ($3,000 - 250) - $27.50). The journal entry to record the payment has a debit accounts Payable because that $2,750, a credit to Inventory because that the discount (i.e., $27.50), and also a credit to Cash for $2,722.50. Note that the discount to reduce the perform account balance since the company uses the perpetual perform system.
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Martin agency purchases $4,200 of merchandise on march 1, through credit terms of 3/10, n/30. If Martin pays on march 11, Martin must pay
The state 3/10, n/30 suggest that the discount is 3% if payment is made in ~ 10 job of the invoice date. This patent Martin agency to take it a discount of $126 (3% x $4,200) on the invoice, $4,200 - 126 = $4,074.
Marsh, Inc. Paid because that freight costs on goods it transport to a customer. In what account will Marsh record this price in a perpetual perform system?
Helix firm purchased merchandise with an invoice price that $2,000 and credit regards to 3/10, n/30. Presume a 360 job year, what is the implied yearly interest rate innate in the credit terms?
The firm saves $60 (i.e., $2,000 x .03) if they salary no later than 10 work after the sale.Also, the firm must pay no later on than 30 days after the sale.Thus, the firm saves $60 if it pays 20 days prior to the last due date.Use the formula because that interest: interest = principal x Interest price x Time$60 = $2,000 x Interest rate x (30-10)/360Interest price = <360/(30-10)> x $60/$2,000 = 0.54 (i.e., 54%)
Wilma"s foodstuffs recorded the following events involving a recent acquisition of inventory: Received goods for $25,000, terms 2/10, n/30. Returned $800 of the shipment for credit. Paid $200 freight ~ above the shipment. Payment the invoice within the discount period.The firm uses the perpetual inventory system. As a result of this events, the company"s inventory