Question
On January 16, Simon Furniture bought 140 tables on account at $120 each. Terms of the purchase were 5/10, n/30. It paid for 75 tables
On
January
16,
Simon
Furniture
bought
140
tables
on account at
$120
each. Terms of the purchase were
5/10,
n/30. It paid for
75
tables
on
January
25 and paid for the remaining
65
tables
on
February
15. If
Simon
uses the gross method to account for its inventory purchases, what is its cash payment and reduction of inventory on
January
25? What is the amount of accounts payable after the
January
25 payment? Assume that the perpetual inventory system is used.
On
January
16,
Simon
Furniture
bought
140
tables
on account at
$120
each. Terms of the purchase were
5/10,
n/30. It paid for
75
tables
on
January
25 and paid for the remaining
65
tables
on
February
15. If
Simon
uses the gross method to account for its inventory purchases, what is its cash payment and reduction of inventory on
January
25? What is the amount of accounts payable after the
January
25 payment? Assume that the perpetual inventory system is used.
On April 25, Simon's cash payment = _____.
On January 25, the reduction of inventory = _____.
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Using Financial Accounting Information The Alternative to Debits and Credits
Authors: Gary A. Porter, Curtis L. Norton
8th edition
1111534918, 978-1111534912
