Reference no: EM132609075

Question 1) Xavier Co. sold goods with the terms 2/15, n/30. What do these payment terms mean?

Question 2) On June 1, merchandise subject to terms 2/10, n/30 was sold on account to a customer for $26,500. On June 3, the customer returns $5,800 of that merchandise.

a) What is the amount of cash collected by the seller if the payment is made by the customer on June 8?

b) What is the amount of cash collected by the seller if payment is made by the customer on June 21?

Question 3) Explain the difference between "transportation-in" and "transportation-out." Also, indicate whether each is a product cost or period cost, and in which account the costs are recorded.

Question 4) Explain the difference between "transportation-in" and "transportation-out." Also, indicate whether each is a product cost or period cost, and in which account the costs are recorded.