Taos company purchased merchandise for resale from tuscon, Ask an Expert

Accounting

Taos Company purchased merchandise for resale from Tuscon Company with an invoice price of $22,000 and credit terms of 2/10, n/60. The merchandise had cost Tuscon $15,004. Taos paid within the discount period. Assume that both buyer and seller use a perpetual inventory system.

Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 11% and paid it back on the last day of the credit period. Compute how much the buyer saved by following this strategy.

View complete question

Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9981404

Have any Question?Write your Review or question?

Related Questions in Accounting Basics

Question - sweet corporation had net sales of 2429800 and

Question - Sweet Corporation had net sales of $2,429,800 and interest revenue of $40,500 during 2017. Expenses for 2017 were cost of goods sold $1,452,600, administrative expenses $221,700, selling expenses $289,000, and ...

Question to make your decision you should use research and

Question: To make your decision you should use research and clearly lay out the facts and assumptions. You should then use the tools like IRR, NPV, TVM, Ratio Analysis, etc to analyze the facts. Finally, make a closing s ...

Question - in its first year of existence year 1 willow

Question - In its first year of existence (year 1), Willow Corp. (a C corporation) reports a loss for tax purposes of $50,000. In year 2 it reports a $40,000 loss. For year 3, it reports taxable income from operations of ...

Assessment -question 1 - the lotteries commission conducts

Assessment - Question 1 - The Lotteries Commission conducts an instant lottery called 'Set for Life' under which a winner who scratches three 'set for life' panels wins $50,000 each year for 20 years. The first $50,000 i ...

Question - good cash management is an essential job of the

Question - Good cash management is an essential job of the financial manager! You own a small auto sales business called King Kars. You stock up on inventory in February, April, June, and September. Your annual cash budg ...

Question - you want to borrow 67000 from your local bank to

Question - You want to borrow $67,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,300, but no more. Required: Assuming monthly compounding, what is the highest rate you can a ...

Question - the asset account office supplies had a

Question - The asset account, Office Supplies had a beginning balance of $5,700. During the accounting period, office supplies were purchased, on account, for $5,100. A physical count, on the last day of the accounting p ...

Question - mr garrett a single taxpayer has 16000 agi

Question - Mr. Garrett, a single taxpayer, has $16,000 AGI. Assume the taxable year is 2018. Use Standard Deduction Table. Married filing jointly and surviving spouses - $24,000 Married filing separately - 12,000 Head of ...

Question - a retailer receives an invoice for 85000 dated

Question - A retailer receives an invoice for $85,000 dated March 29 and has terms 6/10 EOM. What's the amount paid to the vendor if the invoice is paid on May 6?

Question - henry bautista needs 23800 in 10 yearswhat

Question - Henry Bautista needs $23,800 in 10 years. What amount must he invest today if his investment earns 12% compounded annually? What amount must he invest if his investment earns 12% annual interest compounded qua ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Accounting Basics Expert