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Questions and Answers
What is the purpose of offering a cash discount to buyers?
How is the invoice price calculated?
What is the effect of a trade discount on accounts payable?
What does the notation '2/10, n/30' represent?
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What is the effect of a cash discount on accounts payable?
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What is the purpose of the gross method and net method in accounting for cash discounts?
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What is the basis for recording accounts payable when goods are shipped FOB Shipping Point?
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In a FOB shipping point transaction, who is responsible for the payment of freight?
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Who is responsible for paying the freight charges when the shipping terms are FOB Destination and the freight payment term is Freight Collect?
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What is the difference between the Gross method and the Net method of recording accounts payable?
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What is the effect on Accounts payable when goods are purchased FOB shipping point and the buyer pays the freight?
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When is the liability for accounts payable incurred when the goods are shipped FOB Destination?
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In the case of goods in transit from a vendor to Benzyl Corporation on December 31, 2023, with an invoice cost of P50,000 purchased FOB shipping point, what is the necessary adjustment to be made on Accounts payable?
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What is the effect on Accounts payable when goods are purchased FOB destination and the seller pays the freight?
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What is the purpose of segregating freight payment terms into Freight Collect and Freight Prepaid?
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When the shipping terms are FOB Shipping Point and the freight payment term is Freight Prepaid, who is responsible for paying the freight charges?
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In the case of goods shipped FOB shipping point from a vendor to Benzyl Corporation that was lost in transit, what is the necessary adjustment to be made on Accounts payable?
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In the case of goods shipped FOB destination from a vendor to Benzyl Corporation that was received on January 3, 2024, with an invoice cost of P15,000, what is the necessary adjustment to be made on Accounts payable?
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What is the total amount of goods purchased by the company that are still in transit as of year-end?
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How much are the freight charges on the goods purchased on December 28, 2022?
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What is the amount of goods purchased on December 30, 2022, under terms 2/10 n/30?
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What is the amount of checks issued to suppliers on December 29, 2022?
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What is the amount of goods shipped on December 28, 2022, under terms FOB Shipping point?
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What is the purpose of the adjusting entry related to the three types of checks?
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What type of check is a check dated January 3, 2024, written on December 3, 2023, with a reporting date of December 31, 2023?
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What is the amount of goods authorized to be returned for full credit?
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What is the effect of unreleased, stale, and postdated checks on the accounts payable and cash in bank?
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What is the total value of the checks that are postdated or stale as of December 31, 2023?
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What is the adjusted balance of accounts payable as of December 31, 2023?
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Why is an adjusting entry necessary for the postdated check dated January 6, 2024?
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