On March 6, 2011, Bob's Imports purchased merchandise from Watches Inc. with a list price of ($
Question:
On March 6, 2011, Bob's Imports purchased merchandise from Watches Inc. with a list price of \(\$ 31,000\), terms \(2 / 10, n / 45\). On March 10, Bob's returned merchandise to Watches Inc. for credit. The list price of the returned merchandise was \(\$ 6,400\). Bob's paid cash to settle the accounts payable on March 15, 2011.
Required
a. What is the amount of the check that Bob's must write to Watches Inc. on March 15?
b. Record the events in a horizontal statements model like the following one.
c. How much would Bob's pay for the merchandise purchased if the payment is not made until March 20, \(2011 ?\)
d. Record the payment of the merchandise in Event \(c\) in a horizontal statements model like the one shown above.
e. Why would Watches Inc. sell merchandise with the terms \(2 / 10, n / 45\) ?
Step by Step Answer:
The image you sent is a horizontal statements modelwhich is a way to record the financial transactions of a companyThe model has three sectionsassetsliabilities and equityrevenue and expensesand net i...View the full answer
