Poppy imports and sells display fireworks. She supplies her customers on credit terms, reguiring payment of invoices
Question:
Poppy imports and sells display fireworks. She supplies her customers on credit terms, reguiring payment of invoices within 30 days. In order to encourage early payment she offers customers a discount of 0.5% of invoice value for receipt of payment within 30 days.
The following is a list of Poppy's account balances for all sales and expenses items at 28 February 20X2:
Staffing costs 9 777 Opening stock at 1 March 20X1 7 140 Sales returns 3 997 Import duties 9 911 Rental 17 211 Discounts allowed 716 Telephone charges 1 227 Purchases 123 057 Insurance 8 204 Marketing 1888 Administrative expenses 922 Electricity 1 604 Delivery van expenses 2 107 Sales 220 713 Stock at 28 February 20X2 7 393
Step by Step Answer:
Business Accounting And Finance For Non Specialists
ISBN: 9781861528728
1st Edition
Authors: Catherine Gowthorpe