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Lakers company sold merchandise to knicks company

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Lakers Company sold merchandise to Knicks Company on April 1, 2020 at a list price of P150,000. Trade discounts of 15% and 10% were offered to Knicks. Cash discount terms were 4/eom, n/60, FOB destination (transportation is shouldered by the seller). Knicks Co. paid the freight on April 3, 2020 amounting to P8,000. Lakers company issued a credit memo to Knicks Co. for P5,000 for defective merchandise returned on April 5, 2020. Lakers Company collected the amount due on April 28, 2020. Both companies are using the periodic inventory method and are non vat registered business. ( 4/eom means 4% cash discount if paid on or before the end of the month) How much is the invoice price?

Using information in no. 1., How much is the cash discount?

Lakers Company sold merchandise to Knicks Company on April 1, 2020 at a list price of P150,000. Trade discounts of 15% and 10% were offered to Knicks. Cash discount terms were 4/eom, n/60, FOB destination (transportation is shouldered by the seller). Knicks Co. paid the freight on April 3, 2020 amounting to P8,000. Lakers company issued a credit memo to Knicks Co. for P5,000 for defective merchandise returned on April 5, 2020. Lakers Company collected the amount due on April 28, 2020. Both companies are using the periodic inventory method and are non vat registered business. ( 4/eom means 4% cash discount if paid on or before the end of the month)

1. How much is the invoice price?

2. Using information in no. 1., How much is the cash discount?

3. Using information in no. 1., if payment is paid on April 28, 2020, how much will be the amount collected by Lakers Company?

4. Using information in no. 1., if payment is paid on May 5, 2020, how much will be the amount paid by Knicks Company?

Reference no: EM133291125

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