Question
Hughes Company purchased goods from Gonzales with the following terms and details. Sales price, $15,000 Terms, (4/10, n/30) Date of sale, November 3 Date of
Hughes Company purchased goods from Gonzales with the following terms and details.
Sales price, $15,000
Terms, (4/10, n/30)
Date of sale, November 3
Date of payment, November 11
Shipping, FOB Shipping Point, $335, prepaid by seller
Determine if Hughes, the buyer, qualifies for a cash discount, and who pays for shipping, Hughes or Gonzales.
Does the buyer, Hughes, qualify for the discount?
Yes
No
Who pays for shipping?
Hughes, the buyer
Gonzales, the seller
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
9th Canadian Edition, Volume 2
470964731, 978-0470964736, 978-0470161012
