Question

Main Menu ladies clothing BankMobile: Card S...! Main Menu $37,700 $34,500 4 pts Question 5 Merchandise subject to terms 1/10,n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid freight costs of $2,000 and issued a credit memo for $10,000 prior to payment. What is the amount of the cash discount allowable? $250 $170 $130 $150 Question 6 4 pts Using a perpetual inventory system, the entry to record the purchase of $30,000 of merchandise on account would include a credit to Sales

Answer 1

Cash discount allowable = (Sales - Credit memo) X 1%

= ($25,000 - $10,000) X 1%

= $150

4th option.