Explain about purchase discounts, Accounting Basics

Assignment Help:

Q. Explain about Purchase discounts?

Purchase discounts frequently companies purchase merchandise under credit terms that permit them to deduct a stated cash discount if they pay invoices within a specified time. Suppose that credit terms for Hanlon's May 4 purchase are 2/10, n/30. If Hanlon pays for the merchandise by May 14 the store may perhaps take a 2 percent discount. Therefore Hanlon must pay only USD 29400 to settle the USD 30000 account payable. The entry to files the payment of the invoice on May 14 is

2449_Explain about Purchase discounts.png


Related Discussions:- Explain about purchase discounts

Common rule of thumb in business, 80 - 20 rule - A common rule of thumb in ...

80 - 20 rule - A common rule of thumb in business which says that 20% of the items produce80% of the action -- 20% of product line produces 80% of the sales, 20 percent of thecusto

Recording private company credit card sales, Recording Private Company Cred...

Recording Private Company Credit Card Sales Goes to the individual company-not a bank. Treated as a sale on account. Credit card Company is responsible for collection of

Encryption, At the reception it is decrypted and actual data is obtained. ...

At the reception it is decrypted and actual data is obtained. Explain the different methods of encryption technique

Explain what is meant by business, Business is an activity performed with t...

Business is an activity performed with the only intention of earning profit. The activity may differ according to the scope and volume.

What is accrued expenses, Q. What is Accrued expenses? Accrued expenses,...

Q. What is Accrued expenses? Accrued expenses, accruals -- an expense that has been incurred though not yet paid for.Salaries are a good instance. Employees earn or accrue salar

Explain the meaning of payroll deductions, Explain the meaning of Payroll D...

Explain the meaning of Payroll Deductions There are numerous deductions taken from an employee's earnings. These are deducted by employer before employee receives a check. D

Concepts of accounting, What are the implications of applying accounting co...

What are the implications of applying accounting concepts wrongly?

What do you understand by revenue, Q. What do you understand by Revenue? ...

Q. What do you understand by Revenue? Revenue -- Amounts received by or due a company for services or goods it provides tocustomers. Receipts are cash revenues. Revenues can al

2 questions, WHERE DO I START? I have two questions QUESTION1 On March 31,...

WHERE DO I START? I have two questions QUESTION1 On March 31, 2010, our company, Harry Yolo, purchased a 100,000. 8% 10-year bond for 102 from Fish Gimp, due in 6 years & 8 months

the stock market crash , The 2001 Recession: It is November 2001 and the U...

The 2001 Recession: It is November 2001 and the U.S. Stock market has plummeted and the recent September 11th attacks have hurt consumer condence. Businesses have stop hiring and c

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