Reference no: EM132477652

Question 1: Using the gross method of recording sales, what sales price should be recorded when an item with an $1,100 list price is sold with a 15% trade discount? The sales invoice includes the terms 2/10, n/30?

Question 1 options:

1. $1,078
2. $1,100
3. $935
4. $916.30

Question 2: The expression 3/20, n/60 means:

Question 2 options:

1. a 3% discount is available if the invoice is paid within 20 to 60 days.
2. if the 3% discount is not taken, the net amount is due within 60 days.
3. a 15% discount (3 divided by 20) is available if the invoice is paid within 60 days.
4. the invoice is paid in 3 to 20 days; otherwise interest for 60 days will be charged.