Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On August 1, 2020, Lia Inc. purchased merchandise inventory for $10,000, on account, with the following terms: FOB destination, 2/10, n/30. Which of the following
On August 1, 2020, Lia Inc. purchased merchandise inventory for $10,000, on account, with the following terms: FOB destination, 2/10, n/30. Which of the following statements is true?
-
Regardless of when the bill is paid, Lia Inc. must pay the freight costs (shipping costs).
-
Lia Inc. has a total of 40 days to pay for the goods if it is willing to not take the discount.
-
If Lia Inc. pays for these goods on August 8, the amount to be paid will be $9,800.
-
If Lia Inc. pays for these goods on August 15, the amount paid will be $10,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started