## Accounting 210 EXAM 2 at University of Illinois Chicago

What Is the Difference Between Net 30 and 2/10 Net 30. Purchase-related transactions. Journalize entries for the following related transactions of Lilly Heating & Air Company: A. Purchased $36,000 of merchandise from Schell Co. on account, terms 1/10, n/30., Explanation of The Mechanism Of Cash Discount:(a) 2/10, 1/30 , n/60 (b) Net 30 (a) 2/10,1/30 ,n/60. 2/10 means 2% of the net price may be deducted if the invoice is paid within 10 days of the date of the invoice. 1/30 means 1% of the net price may be deducted if the invoice is paid within 11 th and 30 th day and.

### accounting quiz 4 StudyBlue

Accounting Chapter 5 Flashcards Quizlet. This information relates to Pharoah Co.. 1. On April 5, purchased merchandise from Cullumber Company for $28,600, terms 4/10, n/30. 2. On April 6, paid freight costs of $580 on merchandise purchased from Cullumber Company., Nov 13, 2017В В· Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a. вЂ¦.

Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9. Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9.

However, if paid within 10 days, customers enjoy a 2% discount on the goods purchased. If a customer purchases $10,000 from Company A on the terms 2/10 net 30 and pays within 10 days, the customer only needs to pay $10,000 x 0.98 = $9,800. On the other hand, if the customer pays after 10 days, he must pay the full amount of $10,000. When the credit terms are 1%/10 net 30, the net result becomes, in essence, an interest charge of 18.2% upon the failure to take the discount. Depreciation is an accounting method of

After 30 days, of course, additional fees would be applied. This type of statement is usually accompanied by something like 2/15, which means they get a 2% discount if they pay before 15 days is up. So, all together, the statement might look like this: 2/15, n/30. Those are the terms of the payment. Study 75 Accounting 210, EXAM 2 flashcards from Khadijah T. on StudyBlue. Study 75 Accounting 210, EXAM 2 flashcards from Khadijah T. on StudyBlue. inventory costing $2,000 on account with terms 2/10, n/30. On May 18, Ace pays for this inventory and records which of the following using a perpetual inventory system? Accounting for

Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9. When the credit terms are 1%/10 net 30, the net result becomes, in essence, an interest charge of 18.2% upon the failure to take the discount. Depreciation is an accounting method of

Purchase-related transactions. Journalize entries for the following related transactions of Lilly Heating & Air Company: A. Purchased $36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. Accounting Questions and Answers $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct. 13. Paid Hoagie Co. for

View Notes - Quiz4 (Basic Accounting) from ACCOUNTING 101 at De La Salle University. 1. Credit terms of 2/10, n/30 indicate that a a. Two percent discount for early payment is available if the Nov 13, 2017В В· Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a. вЂ¦

Accounting Questions and Answers $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct. 13. Paid Hoagie Co. for a deduction from the invoice price granted to induce early payment of the amount due (2/10,n/30) Purchase Discount Example: On May 7th, Company purchased $27,000 of merchandise inventory on account, credit terms are 2/10,n/30

Question: On November 10 Of The Current Year, Flores Mills Sold Carpet To A Customer For $8,000 With Credit Terms 2/10, N/30. Flores Uses The Gross Method Of Accounting For Cash Discounts. What Is The Correct Entry For Flores On November 10? How Did You Get The Answer. A term could look like 2/10, n/30. The second set of letters and numbers, n/30, is the net terms. The letter "n" stands for net. This means the full amount is due. The second number is a day, in this case 30 days. In this example, the buyer owes the full amount in 30 days.

Aug 13, 2019В В· To expand upon the last example, if the customer must pay within 10 days to obtain a 2% discount, or can make a normal payment in 30 days, then the terms are stated as "2/10 net 30". The table below shows some of the more common credit terms, explains what they mean, and also notes the effective interest rate being offered to customers with Accounting Questions and Answers $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct. 13. Paid Hoagie Co. for

When the credit terms are 1%/10 net 30, the net result becomes, in essence, an interest charge of 18.2% upon the failure to take the discount. Depreciation is an accounting method of May 16, 2009В В· 1 Answer to If merchandise costing $2,500, terms FOB destination, 2/10,n/30, with transportation costs of $100, is paid within 10 days,the amount of the purchases discount is вЂ¦

Oct 01, 2008В В· On March 10, Anthony Company received merchandise for resale from its normal supplier. The price was $3,600 with terms of 2/10, n/30 for 100 units of Part #345. The invoice was paid on March 17. Freight costs were $120 and the company paid $108 of interest on a loan to buy the inventory. What View Test Prep - Exam 3 Accounting.docx from ACCT 122 at West Virginia Northern Community College. Question 1 A company sold merchandise for $1,000 on account with terms of 2/10, n/30. The company

Accounting Questions and Answers $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct. 13. Paid Hoagie Co. for Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9.

Jun 15, 2015В В· 2/10 or 1/10 n/30 are discounts that offer an incentive for a customer to pay for purchases in a timely manner. A company offering terms of 2/10 is offering a discount of 2% provided that the invoice is paid within 10 days. This amounts to a sizable interest rate for paying quickly. Accounting Questions and Answers $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct. 13. Paid Hoagie Co. for

terms 2/10, n/30 Purchases Freight In Accounts Payable Purchased merchandise from The Trend Center, Invoice 633, dated Dec. 30, terms n/30 2,675.00 190.00 2,865.00 3880.00 175.00 Accounting for Purchases and Accounts Payable Section 2: Accounts Payable Chapter 8 Section Objectives 3. Post credit purchases from the purchases journal to the This information relates to Pharoah Co.. 1. On April 5, purchased merchandise from Cullumber Company for $28,600, terms 4/10, n/30. 2. On April 6, paid freight costs of $580 on merchandise purchased from Cullumber Company.

a deduction from the invoice price granted to induce early payment of the amount due (2/10,n/30) Purchase Discount Example: On May 7th, Company purchased $27,000 of merchandise inventory on account, credit terms are 2/10,n/30 The most common discount term is 2/10, n/30. This means that if the vendor pays within 10 days of the invoice, it will get a 2 percent discount. Otherwise, the net amount is due within 30 days. The gross method assumes that the discount will not be taken and records the purchase without regard to the discount. LetвЂ™s take a look at an example

2/10 Net 30 Payment Terms. If you want to improve your cash flow, you can offer early payment discount terms to clients to encourage them to pay early. ThatвЂ™s where 2/10 net 30 comes into play. It shows that the client needs to pay the invoice in full within 30 days of вЂ¦ Mar 19, 2014В В· Video Scribe Project. Cash Discounts: Other Dating Methods-Math w/ Business Apps, Mathematics of Buying chapter.

terms 2/10, n/30 Purchases Freight In Accounts Payable Purchased merchandise from The Trend Center, Invoice 633, dated Dec. 30, terms n/30 2,675.00 190.00 2,865.00 3880.00 175.00 Accounting for Purchases and Accounts Payable Section 2: Accounts Payable Chapter 8 Section Objectives 3. Post credit purchases from the purchases journal to the May 16, 2009В В· 1 Answer to If merchandise costing $2,500, terms FOB destination, 2/10,n/30, with transportation costs of $100, is paid within 10 days,the amount of the purchases discount is вЂ¦

Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9. Jun 15, 2015В В· 2/10 or 1/10 n/30 are discounts that offer an incentive for a customer to pay for purchases in a timely manner. A company offering terms of 2/10 is offering a discount of 2% provided that the invoice is paid within 10 days. This amounts to a sizable interest rate for paying quickly.

Quiz4 (Basic Accounting) 1 Credit terms of 2/10 n/30. Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9., 4. In credit terms of 1/10, n/30, the "1" represents the percent of the cash discount.. The credit terms are a 1% discount if the customer pays within 10 days otherwise the full amount is due in 30 days..

### ADMS2500 Banner Ltd. bought merchandise for $900 terms

Solved ON SEPTEMBER 12 RYAN COMPANY SOLD. Accounting MCQ Accounting Beckett Co. sold merchandise on account for $10,600, terms 2/10, n/30. Freight charges of $250 were prepaid by the seller and added to the invoice. The customer returned $800 of merchandise before making the payment then paid the invoice within the discount period., However, if paid within 10 days, customers enjoy a 2% discount on the goods purchased. If a customer purchases $10,000 from Company A on the terms 2/10 net 30 and pays within 10 days, the customer only needs to pay $10,000 x 0.98 = $9,800. On the other hand, if the customer pays after 10 days, he must pay the full amount of $10,000..

Accounting MCQ Beckett Co. sold merchandise on account. Using the purchase transaction from May 4 and no returns, Hanlon pays the amount owed on May 10. May 10 is within the discount period and Hanlon will take the 2% discount provided in the terms 2/10, n30 (remember, this means 2% discount if paid in 10 days of the вЂ¦, Jul 22, 2013В В· 2/10 Net 30 Example: Mary has started a processing plant for natural vegan snacks. She wants to evaluate the benefits of 2/10 net 30 terms of payment. Details. The invoice amount is $10,000 and 2/10 net 30 accounting is in place. If paid within 10 days: $10,000 X 98% = $9,800 due with in 10 days. If paid within 30 days: $10,000 is due..

### Accounting MCQ Beckett Co. sold merchandise on account

2/10 n/30 FOB shipping point $15000 I am lost on acct. This information relates to Pharoah Co.. 1. On April 5, purchased merchandise from Cullumber Company for $28,600, terms 4/10, n/30. 2. On April 6, paid freight costs of $580 on merchandise purchased from Cullumber Company. Nov 13, 2017В В· Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a. вЂ¦.

View Test Prep - Exam 3 Accounting.docx from ACCT 122 at West Virginia Northern Community College. Question 1 A company sold merchandise for $1,000 on account with terms of 2/10, n/30. The company When the credit terms are 1%/10 net 30, the net result becomes, in essence, an interest charge of 18.2% upon the failure to take the discount. Depreciation is an accounting method of

A term could look like 2/10, n/30. The second set of letters and numbers, n/30, is the net terms. The letter "n" stands for net. This means the full amount is due. The second number is a day, in this case 30 days. In this example, the buyer owes the full amount in 30 days. After 30 days, of course, additional fees would be applied. This type of statement is usually accompanied by something like 2/15, which means they get a 2% discount if they pay before 15 days is up. So, all together, the statement might look like this: 2/15, n/30. Those are the terms of the payment.

Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9. 2/10 Net 30 Payment Terms. If you want to improve your cash flow, you can offer early payment discount terms to clients to encourage them to pay early. ThatвЂ™s where 2/10 net 30 comes into play. It shows that the client needs to pay the invoice in full within 30 days of вЂ¦

Nov 13, 2017В В· Banner Ltd., bought merchandise for $900, terms 2/10, n/30. If Banner returns $300 worth of the goods to the vendor, the entry to record the return should include a. вЂ¦ Mar 12, 2006В В· 2/10, N/30 are terms for an invoice. So say you purchased a items that total $15000. 2/10= 2% discount if invoice paid within 10 days. Now, you will receive a 2% discount off the $15000 if you pay within 10 days. So say you do pay within the 10 day period, you will only owe 15000-300= 14700.

Waters Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, WaterвЂ™s ledger showed Cash of $10,858 and Common Stock of $10,858. May 1 Purchased merchandise on account from Hauke Wholesale Supply for $8,400, terms 1/10, n/30. 2 Sold merchandise on account for $5,500, terms 2/10, n/30. Mar 17, 2017В В· In this video you will learn through online classes About 2/10 N/30 Term , 1:Trade Discount, Accounts Receivable Management 2:Accounts receivable collections...

Study 15 accounting quiz 4 flashcards from class L. on StudyBlue. On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. question: on september 12, ryan company sold merchandise in the amount of $5,800 to johnson company with credit terms of 2/10,n/30. the cost of the items sold is $4000. johnson uses the periodic inventory system and the net method of accounting for purchases. вЂ¦

2/10 Net 30 Payment Terms. If you want to improve your cash flow, you can offer early payment discount terms to clients to encourage them to pay early. ThatвЂ™s where 2/10 net 30 comes into play. It shows that the client needs to pay the invoice in full within 30 days of вЂ¦ Aug 13, 2019В В· To expand upon the last example, if the customer must pay within 10 days to obtain a 2% discount, or can make a normal payment in 30 days, then the terms are stated as "2/10 net 30". The table below shows some of the more common credit terms, explains what they mean, and also notes the effective interest rate being offered to customers with

2/10 Net 30 Payment Terms. If you want to improve your cash flow, you can offer early payment discount terms to clients to encourage them to pay early. ThatвЂ™s where 2/10 net 30 comes into play. It shows that the client needs to pay the invoice in full within 30 days of вЂ¦ May 16, 2009В В· 1 Answer to If merchandise costing $2,500, terms FOB destination, 2/10,n/30, with transportation costs of $100, is paid within 10 days,the amount of the purchases discount is вЂ¦

Purchase-related transactions. Journalize entries for the following related transactions of Lilly Heating & Air Company: A. Purchased $36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. The most common discount term is 2/10, n/30. This means that if the vendor pays within 10 days of the invoice, it will get a 2 percent discount. Otherwise, the net amount is due within 30 days. The gross method assumes that the discount will not be taken and records the purchase without regard to the discount. LetвЂ™s take a look at an example

Using the purchase transaction from May 4 and no returns, Hanlon pays the amount owed on May 10. May 10 is within the discount period and Hanlon will take the 2% discount provided in the terms 2/10, n30 (remember, this means 2% discount if paid in 10 days of the вЂ¦ However, if paid within 10 days, customers enjoy a 2% discount on the goods purchased. If a customer purchases $10,000 from Company A on the terms 2/10 net 30 and pays within 10 days, the customer only needs to pay $10,000 x 0.98 = $9,800. On the other hand, if the customer pays after 10 days, he must pay the full amount of $10,000.

a deduction from the invoice price granted to induce early payment of the amount due (2/10,n/30) Purchase Discount Example: On May 7th, Company purchased $27,000 of merchandise inventory on account, credit terms are 2/10,n/30 This information relates to Pharoah Co.. 1. On April 5, purchased merchandise from Cullumber Company for $28,600, terms 4/10, n/30. 2. On April 6, paid freight costs of $580 on merchandise purchased from Cullumber Company.

Explanation of The Mechanism Of Cash Discount:(a) 2/10, 1/30 , n/60 (b) Net 30 (a) 2/10,1/30 ,n/60. 2/10 means 2% of the net price may be deducted if the invoice is paid within 10 days of the date of the invoice. 1/30 means 1% of the net price may be deducted if the invoice is paid within 11 th and 30 th day and terms 2/10, n/30 Purchases Freight In Accounts Payable Purchased merchandise from The Trend Center, Invoice 633, dated Dec. 30, terms n/30 2,675.00 190.00 2,865.00 3880.00 175.00 Accounting for Purchases and Accounts Payable Section 2: Accounts Payable Chapter 8 Section Objectives 3. Post credit purchases from the purchases journal to the

terms 2/10, n/30 Purchases Freight In Accounts Payable Purchased merchandise from The Trend Center, Invoice 633, dated Dec. 30, terms n/30 2,675.00 190.00 2,865.00 3880.00 175.00 Accounting for Purchases and Accounts Payable Section 2: Accounts Payable Chapter 8 Section Objectives 3. Post credit purchases from the purchases journal to the Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9.

Mar 19, 2014В В· Video Scribe Project. Cash Discounts: Other Dating Methods-Math w/ Business Apps, Mathematics of Buying chapter. The most common discount term is 2/10, n/30. This means that if the vendor pays within 10 days of the invoice, it will get a 2 percent discount. Otherwise, the net amount is due within 30 days. The gross method assumes that the discount will not be taken and records the purchase without regard to the discount. LetвЂ™s take a look at an example

Study 75 Accounting 210, EXAM 2 flashcards from Khadijah T. on StudyBlue. Study 75 Accounting 210, EXAM 2 flashcards from Khadijah T. on StudyBlue. inventory costing $2,000 on account with terms 2/10, n/30. On May 18, Ace pays for this inventory and records which of the following using a perpetual inventory system? Accounting for Accounting Questions and Answers $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct. 13. Paid Hoagie Co. for

The most common discount term is 2/10, n/30. This means that if the vendor pays within 10 days of the invoice, it will get a 2 percent discount. Otherwise, the net amount is due within 30 days. The gross method assumes that the discount will not be taken and records the purchase without regard to the discount. LetвЂ™s take a look at an example Mar 17, 2017В В· In this video you will learn through online classes About 2/10 N/30 Term , 1:Trade Discount, Accounts Receivable Management 2:Accounts receivable collections...

2/10 Net 30 Payment Terms. If you want to improve your cash flow, you can offer early payment discount terms to clients to encourage them to pay early. ThatвЂ™s where 2/10 net 30 comes into play. It shows that the client needs to pay the invoice in full within 30 days of вЂ¦ Mar 12, 2006В В· 2/10, N/30 are terms for an invoice. So say you purchased a items that total $15000. 2/10= 2% discount if invoice paid within 10 days. Now, you will receive a 2% discount off the $15000 if you pay within 10 days. So say you do pay within the 10 day period, you will only owe 15000-300= 14700.

A term could look like 2/10, n/30. The second set of letters and numbers, n/30, is the net terms. The letter "n" stands for net. This means the full amount is due. The second number is a day, in this case 30 days. In this example, the buyer owes the full amount in 30 days. Accounting Questions and Answers $9,950, terms FOB shipping point, 2/10, n/eom. Prepaid freight of $220 was added to the invoice. 4. Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30. 6. Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4. Oct. 13. Paid Hoagie Co. for

Purchase-related transactions. Journalize entries for the following related transactions of Lilly Heating & Air Company: A. Purchased $36,000 of merchandise from Schell Co. on account, terms 1/10, n/30. Mar 31, 2017В В· 4. Net 7, 10, 30, 60, 90. These imply that the net payment is due in either 7, 10, 30, 60, or 90 days after the invoice date. For example, if the invoice was dated June 10 and you used one of the most used payment terms, Net 30, then the payment would be expected before July 9.

Mar 19, 2014В В· Video Scribe Project. Cash Discounts: Other Dating Methods-Math w/ Business Apps, Mathematics of Buying chapter. 2/10, n/30. If the vendor's invoice has terms of 2/10, n/30, the "2" represents 2%, the "10" represents 10 days, the "n" represents the word net and the "30" represents 30 days. This means that the buyer can take an early payment discount of 2% of the amount owed if the amount is remitted within 10 days instead of the customary 30 days.

Oct 01, 2008В В· On March 10, Anthony Company received merchandise for resale from its normal supplier. The price was $3,600 with terms of 2/10, n/30 for 100 units of Part #345. The invoice was paid on March 17. Freight costs were $120 and the company paid $108 of interest on a loan to buy the inventory. What When the credit terms are 1%/10 net 30, the net result becomes, in essence, an interest charge of 18.2% upon the failure to take the discount. Depreciation is an accounting method of