Answer to Question #215537 in Accounting for zuby

Question

Raiser Company purchased goods at a gross selling price of USD 2,400 on August 1. Discount terms

of 2/10, n/30 were available. For each of the following independent situations, determine (1) the cash discount available on the final payment and (2) the amount paid if payment is made within the discount period.

Purchase Transportation Freight Allowance Terms Paid (by) Granted

a. FOB shipping point $240 (buyer) $480

b. FOB destination 120 (seller) 240

c. FOB shipping point 180 (seller) 720

d. FOB destination 192 (buyer) 120

Answer 1

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