Accounts payable and credit terms for customers

Related BrainMass Solutions

• Cash Conversion Cycle

  A company has credit sales of $6 million annually and purchases $3 million from its suppliers. The company receives credit terms of 1/10, net 40 from its suppliers and extends credit terms of 2/10, n30 to its customers.

• Change in credit terms

  When a customer purchases on credit, it would be reflected as Accounts payable in the customers balance sheet. When the selling firm changes the credit terms we have to find out the impact on Accounts Payable on the customers balance sheet.

• What we can tell from looking at statement of cash flow?

  The company also provides credit term to its customers for the amount of $15,000 with the amount of $10,000 being financed via the accounts payable that the company receives from the suppliers.

• Swiss Valley Veterinary Products: Cash Budgeting

  Cash collection are from customers and cash payments are to suppliers of swine health care products. The figures shown for Accounts receivable, Inventories, and Accounts payable represent month-end amounts.

• A chain of appliance stores, APP Corporation, purchases inventory with a net price of $500,000 each day. The company purchases the inventory under the credit terms of 2/15, net 40. APP always takes the discount, but takes the full 15 days to pay its bills. What is the average accounts payable for APP?

  108515 Accounts Payable, Receivable Investment Accounts Payable A chain of appliance stores, APP Corporation, purchases inventory with a net price of $500,000 each day. The company purchases the inventory under the credit terms of 2/15, net 40.

• Midwest Distributing Company

  . $6,300, terms 2/10, n/30 Apr. 2 Merchandise Inventory 6,300 Accounts Payable 6,300 Apr. 4 Sold merchandise on account for $5,000, terms 2/10, n/30. The cost of the merchandise sold was $3,700.

• Dazzle Book Warehouse

  74948 Dazzle Book Warehouse Dazzle Book Warehouse distributes hardbacks books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Dazzle's inventory consisted of 240 books purchased at $1,200.

• Accounting: Systems of Merchandise

  For transportation costs, we need to debit freight-in expense and credit accounts payable because it is on credit.

• Cash conversion, inventory, and receivables management

  (BB) generated $43,803,000 in sales (all on credit) during 2010. The cost of goods sold was 57% of that total. Accounts receivable totaled $3,240,222, inventory totaled $842,020, and accounts payable totaled $1,826,070. 1.