What is a purchase discount, Basic Statistics

Assignment Help:

What is a purchase discount?

A buy lower price is a deduction that may be available to a customer if the client will pay an account within a prescribed time. For example, a supplier's account for $10,000 with the money score terms 2/10 net 30 indicates that the client will be allowed a buy lower price of $200 (2% of $10,000) if the client will pay within 10 times.

If the client will pay in 1 month, there is no buy lower price.Under a regular inventory system, the buy lower price on merchandise purchased is credited to the general ledger consideration Purchase Discounts.

Your credit rating stability in this consideration (along with the money score stability in the Purchase Returns and Allowances account) will be subtracted from the debit stability in the Buys consideration in determining the amount of net purchases.A buy lower price of 2% for shelling out 20 times beginning (paying in 10 times instead of 30 days) equates to a yearly amount of 36%.

A buy lower price of 1% for shelling out 20 times beginning means a yearly amount of 18%.While the client refers to this as a buy lower price, the seller will refer to it as a sales lower price. The lower price is also known as an early-payment lower price or a cash lower price.

Expertsmind.com offers unique accounting assignment help


Related Discussions:- What is a purchase discount

Discrete random variable, ABC company has 2000 accounts receivable. The mea...

ABC company has 2000 accounts receivable. The mean and standard deviation are $300 and $50, respectively. Assume that the accounts are normally distributed.

Describe the location of firms and equilibrium , Take the Hotelling's locat...

Take the Hotelling's location model (the linear city) discussed in class for the case in which all firms are required to charge the same fixed price. Further assume that firms choo

Employer''s fica tax rate for 2012, Employer's FICA tax rate for 2012 Th...

Employer's FICA tax rate for 2012 The employer's FICA tax amount for 2012 involves 1) the Public Protection tax amount of 6.2% of each individual's first $110,100 of income, inc

Benefits of financial sales, Expertsmind.com offering Uses of Financial Ac...

Expertsmind.com offering Uses of Financial Accounting Financial Accounting Sales performs important and useful part by creating the details for offering solutions to many conc

Basis of accounting, Basis of accounting This represents the technique and...

Basis of accounting This represents the technique and time of when income and costs or costs are acknowledged in the records and revealed in the fiscal reports. Talk about ACCRUAL

Prepare journal entries, Quick Company acquired a piece of equipment in Yea...

Quick Company acquired a piece of equipment in Year 1 st cost $100,000. The equipment has a 10-year estimated life, zero salvage value and a depreciation of a straight line basis.

Var representation of sutse model, Dear expert, Assume that we have a multi...

Dear expert, Assume that we have a multivariate unobserved component model (or SUTSE, seemingly unrelated time series equation model) in STATE SPACE form, that is: Y(t) = H A(t) +

Historigram, what is historigram in statistics please give the problems and...

what is historigram in statistics please give the problems and there solution in statistics as soon as possible

Level of significance, Consider the sample data for plants A, B, C & D of t...

Consider the sample data for plants A, B, C & D of the above company, which are tabulated in table 1. Test whether the four means are equal at the 5% level of significance. Perform

Write Your Message!

Captcha
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