What is a purchase allowancea buy permitting is a reduction, Ask an Expert

Statistics

What is a purchase allowance?

A buy permitting is a reduction in the customer's cost of products that it had purchased. The buy permitting is granted by the provider because of a problem such as shipping the wrong items, the incorrect quantity, faults in the goods, etc. In the case of a buy permitting, the client does not return the products to the provider.

Under a regular inventory system, the client will history the buy permitting with 1) a credit score to the consideration Purchase Considerations or to the consideration Purchase Returns and Considerations, and 2) a charge to Records Due. (The provider wills history the permitting with a charge to Sales Considerations and a credit score to Records Receivable.)

The customer will balanced out the charge stability in its Buys consideration with the money score stability in Purchase Considerations as part of its calculations of net purchases.

Expertsmind.com offers unique accounting assignment help

View complete question

Statistics and Probability, Statistics

Category:- Statistics and Probability
Reference No.:- M9502074

Have any Question?Write your Review or question?

Related Questions in Statistics and Probability

The managers of a car store observe that 70 of all the cars

The managers of a car store observe that 70% of all the cars they sell are bought by people who already own a car. They also observe that 50% of the customers who come to the store but do not buy a car, already own one. ...

Discuss two types of costs amp two types of

Discuss two types of costs & two types of benefits(excluding tax shield and EPS) that would potentially arise from the leveraged recapitalization( a firm proposed a leveraged recapitalization which could create immediate ...

Boxes of sugar are filled by machine with considerable

Boxes of sugar are filled by machine with considerable accuracy. The distribution of box weights is normal and has a mean of 32 ounces with a standard deviation of only 2 ounces. A quality control inspector takes a sampl ...

It is now may 1 2015 and timmy has just purchased a

It is now May 1, 2015, and Timmy has just purchased a five-year U.S. government bond (FV = $1,000) with a quoted price of 93.779. This bond has a 6-percent coupon rate, and the last semi-annual coupon payment was made on ...

What are the ways that it can help comply with legal

What are the ways that IT can help comply with legal requirements and social responsibilities surrounding the sales of alcohol?

Consider the study of two insect populations at two exper-

Consider the study of two insect populations at two exper- imental stations. At station A, the egg hatch rate (computed from a set of 100 eggs at a time) is known to follow approximately a normal distribution with mean 6 ...

Consider the following difference equation and initial

Consider the following difference equation and initial condition(s). In each case, verify that the expression given for an (i) is a solution of the equation (ii) satisfies the initial condition(s). (a) an = 2(1/3)n satis ...

Find the modified internal rate of return mirr the annual

Find the modified internal rate of return (MIRR) The annual rate is 8.24%. Initial outlay is $356,800. Year 1: $163,100 Year 2: $173,100 Year 3: $181,300 Year 4: $175,700 Year 5: $161,400

Question 1 find the area between -88 standard deviations

Question 1: Find the area between .-88 standard deviations below the mean and 2.35 standard deviations above the mean. '88=.3106 and 2.3=.4906 Both figures are added .3106+.4906= .8012 which is 80.12% Question 2: The are ...

A logging truck sales representative will phone either one

A logging truck sales representative will phone either one or two potential buyers per day with probabilities of 0.25 and 0.75, respectively. Each contact will result in either no sale or a $75,000 sale with probabilitie ...

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 Statistics and Probability Expert