Reference no: EM133141725

Questions -

Q1. Pina Colada Corp. purchased merchandise inventory with an invoice price of $14200 and credit terms of 2/12, n/30. What is the net cost of the goods if Pina Colada Corp. pays within the discount period?

Q2. Bramble Corp. purchased merchandise with an invoice price of $3200 and credit terms of 2/10, n/30. Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms?

Q3. A buyer borrows money at 7% interest to pay a $8100 invoice with terms 1/10, n/30 on the 10th day of the discount period. The loan is repaid on the 30th day of the invoice. What is the buyer's net savings for these two transactions? (Assume a 360 day year.)

Q4. Blue Spruce Corp. had the following transactions during 2021:

Sales of $10440 on account

Collected $4640 for services to be performed in 2022

Paid $4350 cash in salaries for 2021

Purchased airline tickets for $580 in December for a trip to take place in 2022

What is Blue Spruce's 2021 net income using accrual accounting?

Q5. A credit sale of $6000 is made on April 25, terms 2/10, net/30, on which a return of $200 is granted on April 28. What amount will be received as payment in full if collected on May 4?

Q6. Metlock, Inc. purchased merchandise with an invoice price of $2500 and credit terms of 3/9, n/30. Assuming a 360-day year, what is the implied annual interest rate inherent in the credit terms?

Q7. The entry to record the receipt of payment within the discount period on a sale of $1500 with terms of 2/9, n/30 will include a

Q8. The entry to record a sale of $3100 with terms of 2/13, n/30 will include a

Q9. The collection of a $3400 account within the 2 percent discount period will result in a

Q10. Marigold Corp. sells $3200 of merchandise on account to Sheffield Company with credit terms of 2/7, n/30. If Sheffield Company remits a check taking advantage of the discount offered, what is the amount of Sheffield Company's check?

Q11. Tamarisk, Inc. sells merchandise on account for $2550 to Culver Company with credit terms of 2/15, n/30. Culver Company returns $200 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check?

Q12. Oriole Company sells $2500 of merchandise on account to Blue Spruce Exploration with credit terms of 2/10, n/30. If Blue Spruce Exploration remits a check taking advantage of the discount offered, what is the amount of Blue Spruce Exploration's check?

Q13. At December 31, 2022, Metlock, Inc. inventory records indicated a balance of $644000. Upon further investigation it was determined that this amount included the following:

$115000 in inventory purchases made by Metlock shipped from the seller 12/27/22 terms FOB destination, but not due to be received until January 2nd

$87000 in goods sold by Metlock with terms FOB destination on December 27. The goods are not expected to reach their destination until January 6.

$5000 of goods received on consignment from Debra Company

What is Metlock's correct ending inventory balance at December 31, 2022?

Q14. At May 1, 2022, Sheridan Company had beginning inventory consisting of 250 units with a unit cost of $6. During May, the company purchased inventory as follows:

500 units at $6

760 units at $7

The company sold 1260 units during the month for $10 per unit. Sheridan Company uses the average cost method. The value of Sheridan Company's inventory at May 31, 2022 is?