Question : 19) Determine the amount to be paid to the vendor : 1177123

19) Determine the amount to be paid to the vendor within the discount period for purchase with an invoice price of $3,000 and credit terms of 2/10, n/30 when $700 has already been returned for credit. The goods were purchased with freight terms of F.O.B shipping point and freight of $50 was included on the invoice.

$ ________

10.4   Learning Objective 10-4

1) Jackson purchased $500 of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?

A) $450

B) $510

C) $500

D) $490

2) The entry to record a payment on a $600 account within the 2% discount period would include a:

A) debit to Accounts Payable for $588.

B) debit to Accounts Payable for $600.

C) credit to Purchases for $588.

D) debit to Cash for $600.

3) Heidi’s Accessories bought 50 necklaces for $10 each on account. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the payment (within the discount period) would include:

A) a credit to Cash for $477.

B) a credit to Cash for $468.

C) a credit to Accounts Receivable for $477.

D) a credit to Accounts Receivable for $468.

4) Medeco bought goods for $250 on credit. Medeco returned $50 worth of goods. Terms of the sale were 2/10, n/30. If Medeco pays the amount owed within the discount period, what is the amount they should pay?

A) $250

B) $204

C) $196

D) $200

5) On June 15, Paradise Park purchased merchandise for the race track.. The invoice was for $4,500, terms 2/10, n/30. On June 20, Paradise Park returned $200 of merchandise for credit. On June 25, it paid the amount owed. Fill in the blanks below.

a) The debit to Purchases on June 15 is ________.

b) The credit to Accounts Payable on June 15 is ________.

c) The credit to Purchases Returns and Allowances on June 20 is ________.

d) The credit to Cash on June 25 is ________.

e) The credit to Purchases Discount on June 25 is ________.

Journalize the following transactions. All purchases are on account and subject to terms of 2/10, n/30. The periodic inventory method is used.

Nov. 3Purchased merchandise with a price of $2,000 from the Bartkowski Inc.

Nov. 5Purchased merchandise from the Thiesman and Co. with a price of $4,000.

Nov. 7Purchased merchandise with a price of $2,000 from the Montana Supply Co.

Nov. 10Paid the amount due to Bartkowski Inc.

Nov. 12Paid the amount due to Thiesman and Co.

Nov. 23Paid the amount due to Montana Supply Co.

6) Journalize the Nov. 3 transaction.

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7) Journalize the Nov. 5 transaction.

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8) Journalize the Nov. 7 transaction.

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