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dolphi86 [110]
2 years ago
5

Simmons sold merchandise to Drake for $5,000 with payment terms of 2/10, n/30. Two days later, Drake returned two of the units a

nd received account credit in the amount of $2,000. If Drake pays his account in full within ten days of the invoice date, what is the amount of the sales discount?
Business
1 answer:
QveST [7]2 years ago
3 0

Answer:

the discount is for 60 dollars

therefore Simmons will pay 2,940 dollar for the inventory

Explanation:

From the invoice nominal we should remove the returned goods.

nominal  5,000

returns   2,000

balance: 3,000

commercial terms: 2/10 the discount is 2% if paid within 10 days

3,000 x 2% = 60 dollars

net cash disbursements: 3,000 - 60 = 2,940 dollars

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Emilio works in a power plant control room. Dawn works in a coal mine. What do Emilio and Dawn have in common? They both are sel
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2 years ago
Card Corp. purchased bonds at a discount of $49,000, and accounted for the bonds as held to maturity. Subsequently, Card sold th
jonny [76]

Answer:

$42,000

Explanation:

Data provided

Bonds at a discount = $49,000

Sold bonds at a premium = $12,000

Discount amount = $19,000

The computation of the sale of bonds is shown below:-

Cost + Premium - (Cost - Carrying value cost)

Carrying cost = $49,000 - $19,000

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($49,000 + $12,000) - ($49,000 - $30,000)

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6 0
1 year ago
Harvey County Choppers, Inc. is experiencing rapid growth. The company expects dividends to grow at 25 percent per year for the
densk [106]

Answer:

The current stock price should be at $60.15.

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We have the dividend paid next year = 1.05 x 1.25 = $1.3125.

So, the present value of the growing annuity of dividend stream in the next 7 years is calculated as:

[ 1.3125 / (12% - 25%) ] x [ 1 - [ (1+25%)/( 1+12%) ] ^7 ] = $11.68.

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[ 1.05 x 1.25^7 x 1.07/ (12% - 7%) ] / 1.12^7 = $48.47.

The price of the stock should be equal to the sum of present value of the two dividend stream above which is 11.68 + 48.47 = $60.15.

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2 years ago
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