Which the entry to record the receipt of payment

Assignment Help Financial Accounting
Reference no: EM133007418

Problem 1: If a company is given credit terms of 2/10, n/30, it should

A) recognize that the supplier is desperate for cash and withhold payment until the end of the credit period while negotiating a lower sales price.
B) pay within the credit period but don't take the trouble to invest the cash while waiting to pay the bill.
C) hold off paying the bill until the end of the credit period, while investing the money at 10% annual interest during this time.
D) pay within the discount period and recognize a savings.

Problem 2: The entry to record the receipt of payment within the discount period on a sale of P750 with terms of 2/10, n/30 will include a credit to

A) Cash for P735.
B) Accounts Receivable for P750.
C) Sales Discounts for P15.
D) Sales for P750.

Reference no: EM133007418

Questions Cloud

Steps takes place during job analysis : Identify the order in which each of the following steps takes place during job analysis.
What the company merchandise inventory for jake market : Paid P100 freight on the shipment. Paid the invoice within the discount period. As a result of these events, the company's merchandise inventory
Pre-employment tests : Pre-employment tests are skill-based assessments that are used by organizations during the hiring process to determine if a candidate has the correct skills an
Internal and external entities in health information : How can you determine the difference between internal and external entities in health information management?
Which the entry to record the receipt of payment : Which the entry to record the receipt of payment within the discount period on a sale of P750 with terms of 2/10, n/30 will include a credit to
Different analytics tools-software : Research 3 different analytics tools/software. Describe each tool's features and benefits
How would you know when od intervention : How would you know when OD intervention is required to solve certain organization problems? What process will you go through to determine the need for one?
What is the entry to record the unrealized gain or loss : What is the entry to record the unrealized gain or loss? On January 1, 2016, an entity purchased marketable equity securities not qualifying as financial asset
Create a combined chart of the two interest components : Construct a data table for interest and principal component under the two interest rates. Create a combined chart of the two interest components

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd