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Sales with terms 2/ 10, n/ 30 means:
The buyer gets a 10 percent discount for payment within 30 days.
The buyer gets 2 percent discount for payment within 10 days.
The buyer gets a 10 percent discount for payment within 10 days.
The buyer gets a 2 percent discount for payment within 30 days.
A $ 1,000 sale is made on May 1 with terms 2/ 10, n/ 30. What amount, if received on May 9, will the customer’s check be?
A company has net sales of $500,000 and cost of goods sold of $400,000. The company’s gross profit percentage is:
Company Alpha has Sales of $800,000, Sales Discounts of $40,000 and Sales Returns of $50,000. How will this be shown on the Income Statement?
With net sales of $710,000
With net sales of $890,000
With net sales of $790,000
With net sales of $810,000
On March 1, 200X Bravo Company sells $6,000 of services on credit terms offering a 2% discount if paid within ten days. They are paid on March 3. The customer takes the discount, what is Bravo Company’s accounting entry on March 3, 200X?
Debit cash $6,000; credit accounts receivable $6,000.
Debit cash $5,880; credit accounts receivable $6,000.
Debit cash $5,880; credit accounts receivable $5,880.
Debit cash $5,880; debit sales discount $120; credit accounts receivable $6,000.
The accounting entry for a sales return includes:
A debit to the sales account and a credit to cash.
A credit to the sales account and a debit to cash.
A debit to the sales return account and a credit to cash.
A credit to inventory and a debit to the sales return account.
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