Podcast
Questions and Answers
What is the purpose of offering a cash discount to buyers?
What is the purpose of offering a cash discount to buyers?
- To improve cash flow and reduce the risk of late payments (correct)
- To discourage early payment of an invoice
- To increase the list price of merchandise
- To encourage late payments
How is the invoice price calculated?
How is the invoice price calculated?
- List price + cash discount - trade discount
- List price - trade discount - cash discount
- List price + trade discount + cash discount
- List price - trade discount (correct)
What is the effect of a trade discount on accounts payable?
What is the effect of a trade discount on accounts payable?
- It has no effect on accounts payable
- It is added to accounts payable
- It decreases accounts payable (correct)
- It increases accounts payable
What does the notation '2/10, n/30' represent?
What does the notation '2/10, n/30' represent?
What is the effect of a cash discount on accounts payable?
What is the effect of a cash discount on accounts payable?
What is the purpose of the gross method and net method in accounting for cash discounts?
What is the purpose of the gross method and net method in accounting for cash discounts?
What is the basis for recording accounts payable when goods are shipped FOB Shipping Point?
What is the basis for recording accounts payable when goods are shipped FOB Shipping Point?
In a FOB shipping point transaction, who is responsible for the payment of freight?
In a FOB shipping point transaction, who is responsible for the payment of freight?
Who is responsible for paying the freight charges when the shipping terms are FOB Destination and the freight payment term is Freight Collect?
Who is responsible for paying the freight charges when the shipping terms are FOB Destination and the freight payment term is Freight Collect?
What is the difference between the Gross method and the Net method of recording accounts payable?
What is the difference between the Gross method and the Net method of recording accounts payable?
What is the effect on Accounts payable when goods are purchased FOB shipping point and the buyer pays the freight?
What is the effect on Accounts payable when goods are purchased FOB shipping point and the buyer pays the freight?
When is the liability for accounts payable incurred when the goods are shipped FOB Destination?
When is the liability for accounts payable incurred when the goods are shipped FOB Destination?
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?
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?
What is the effect on Accounts payable when goods are purchased FOB destination and the seller pays the freight?
What is the effect on Accounts payable when goods are purchased FOB destination and the seller pays the freight?
What is the purpose of segregating freight payment terms into Freight Collect and Freight Prepaid?
What is the purpose of segregating freight payment terms into Freight Collect and Freight Prepaid?
When the shipping terms are FOB Shipping Point and the freight payment term is Freight Prepaid, who is responsible for paying the freight charges?
When the shipping terms are FOB Shipping Point and the freight payment term is Freight Prepaid, who is responsible for paying the freight charges?
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?
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?
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?
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?
What is the total amount of goods purchased by the company that are still in transit as of year-end?
What is the total amount of goods purchased by the company that are still in transit as of year-end?
How much are the freight charges on the goods purchased on December 28, 2022?
How much are the freight charges on the goods purchased on December 28, 2022?
What is the amount of goods purchased on December 30, 2022, under terms 2/10 n/30?
What is the amount of goods purchased on December 30, 2022, under terms 2/10 n/30?
What is the amount of checks issued to suppliers on December 29, 2022?
What is the amount of checks issued to suppliers on December 29, 2022?
What is the amount of goods shipped on December 28, 2022, under terms FOB Shipping point?
What is the amount of goods shipped on December 28, 2022, under terms FOB Shipping point?
What is the purpose of the adjusting entry related to the three types of checks?
What is the purpose of the adjusting entry related to the three types of checks?
What type of check is a check dated January 3, 2024, written on December 3, 2023, with a reporting date of December 31, 2023?
What type of check is a check dated January 3, 2024, written on December 3, 2023, with a reporting date of December 31, 2023?
What is the amount of goods authorized to be returned for full credit?
What is the amount of goods authorized to be returned for full credit?
What is the effect of unreleased, stale, and postdated checks on the accounts payable and cash in bank?
What is the effect of unreleased, stale, and postdated checks on the accounts payable and cash in bank?
What is the total value of the checks that are postdated or stale as of December 31, 2023?
What is the total value of the checks that are postdated or stale as of December 31, 2023?
What is the adjusted balance of accounts payable as of December 31, 2023?
What is the adjusted balance of accounts payable as of December 31, 2023?
Why is an adjusting entry necessary for the postdated check dated January 6, 2024?
Why is an adjusting entry necessary for the postdated check dated January 6, 2024?
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