May 22, 2021 · *For counting the days, always begin after the invoice date. For the discount payment date, the invoice date is September 21. So start counting the 15 days from September 22 (September 22 to October 6) For the non-discount payment date, discounted invoice date is October 6. So start counting 45 days from October 7 (October 7 to November 21 ...
May 06, 2020 · 109. Award: 1.00 point A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, The correct journal entry to record the purchase on July 5 is: Debit …
The three components of credit policy are: collection policy, credit analysis, and terms of the sale. On September 1, a firm grants credit with terms of 2/10 net 30. The creditor: receives a discount of 2 percent when payment is made within 10 days. The length of the credit period offered by a firm is influenced by all of the following except the:
A. payment in full is due 2 days after date of the invoice. B. if the invoice is paid within 10 days of its date, a 2% discount may be taken; otherwise the total amount is due in 45 days C. if the invoice is paid within 10 days of its date, a 2% discount may be …
In the books of Tango Co. there is an increase of $12,000 in the accounts receivable account, and in the books of Salsa Co. there is an increase of $12,000 in the accounts payable account. The seller issues a credit memo for $700 for damaged merchandise to the buyer, and the merchandise was not returned by the buyer.
c. reported on the income statement as an expense.
c. The liability for sales tax is incurred only when the sale is made in cash.
d. There is no effect on liquidity, but there is a decrease in the profitability of the seller.
a. There is a decrease in liquidity, but there is no effect on the profitability of the seller.
a. There is no effect on the working capital.
A stock dividend is paid using already issued shares; a split requires new shares to be issued.
A customer has 45 days from the date of invoice to pay a bill in full, but if he pays within 15 days of the invoice, he gets a 10% discount. Which of the following describes these terms of trade?
A zero-coupon bond has a face value of $1000 and a market value of $800. The bond will mature in 5 years. What is its yield to maturity?
A sinking fund is used by firms to retire some of its outstanding debt every year. Which of the following is a way that a sinking fund may operate?
The firm may repurchase the bonds in the open market.
The component securities have small or negative correlation coefficients.
In many instances, a flowchart is preferable to a questionnaire because a picture is usually more easily comprehended.
A restrictive endorsement ("for deposit only") will put transferees on notice to act accordingly (that is, deposit the check in the organization's account). Organizational independence is required in the processing of customers' orders in order to maintain an internal control structure.
When shipping documents are not received in the shipping department (such as copies of the sales invoice, customer order form, and bill of lading), the clerk should attempt to obtain the proper documentation from the originating organization. This type of control is detective because it detects and attempts to correct an undesirable event that has occurred. It is also active because it takes a conscious intervention by the clerk to ensure the documentation is received.
Symbol X is a document, that is, hard copy output of the validation routine shown. The time card data, the validated data, and the errors are recorded on magnetic disk after the validation process. Thus, either an error report or the valid time card information is represented by Symbol X.
C. Send confirmations to the dentists requesting them to confirm the exact nature of the claims submitted to the healthcare processor.
B. A security guard allows one of the warehouse employees to remove assets from the premises without authorization.
Accounting for payables is a recording function. The matching of the supplier's invoice, the purchase order, and the receiving report (and usually the purchase requisition) should be the responsibility of the accounting department. These are the primary supporting documents for the payment voucher prepared by the accounts payable section that will be relied upon by the chief financial officer in making payment.