Total cash discounts allowed; ROI calculation for discounts

Related BrainMass Solutions

• Multiple Choice Questions

  If payment is made within the discount period, the purchaser' s journal entry to record total payment would include a: a. credit to Cash of $850 b. debit to Accounts Payable of $833 c. credit to Cash of $834 d. credit to Purchases Discounts of $17

• Discounts/Credit Terms

  The total amount paid is 16,464+600=17,064 Answer c The solution explains how to calculate the net amount after trade and cash discount.

• Terms of sale-effective annual interest rate

  If you do not take the cash discount, in effect you are borrowing the difference between the total amount billed $100.and the amount of the cash discount $1. which, of course is $99.

• Sales Discount

  Thanks for your help. The total cash discounts are as below 1. R. Jones - 11,500X2% = 230 ( one unit was returned) 2. Cash collected is $98,000. Since this is in the discount period, this amount will be after the discount.

• Cash Management: Dome has a credit sale of $ 144000 yearly

  use the full sales of $144000 for your calculation of receivable.

• Cost of Goods Sold and the Tax Gap; Trade and Cash Discounts; Financial Statement Ratios

  Cash discounts are amounts deducted for prompt payments, and can either be included in a separate income account or deducted from total purchase amounts for the year.

• Various Finance Problems

  338983 Exercises 5.8, 5.10, 5.14: TOI on discounts, note receivable interest, prepaid rent Exercise 5.8 Cash discounts- ROI a.

• Trade Credit Terms

  274002 Trade Credit Terms What is the cost of not taking the suppliers' discounts? Reed's purchased about 80% of its purchases on terms of 3/10, net 60 and did not take cash discounts offered by the suppliers.

• Asset Activity Ratios

  Total Asset Turnover. Term: Total asset turnover Definition: The ratio of net sales to total assets. Term: Net sales Definition: Gross sales less returns and allowances, freight out, and Cash discounts allowed.