Purchases Transactions

question 1

Purchases Transactions

Xanadu Company purchased merchandise on account from a supplier for $10,100, terms 2/10, n/30. Xanadu Company returned $1,800 of the merchandise and received full credit.

a. If Xanadu Company pays the invoice within the discount period, what is the amount of cash required for the payment?

Nov. 3.	Purchased merchandise on account from Moonlight Co., list price $82,000, trade discount 30%, terms FOB destination, 2/10, n/30.
4.	Sold merchandise for cash, $34,690. The cost of the merchandise sold was $20,710.
5.	Purchased merchandise on account from Papoose Creek Co., $49,850, terms FOB shipping point, 2/10, n/30, with prepaid freight of $800 added to the invoice.
6.	Returned $11,200 ($16,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co.
8.	Sold merchandise on account to Quinn Co., $14,010 with terms n/15. The cost of the merchandise sold was $8,750.
13.	Paid Moonlight Co. on account for purchase of November 3, less return of November 6.
14.	Sold merchandise on VISA, $245,580. The cost of the merchandise sold was $129,010.
15.	Paid Papoose Creek Co. on account for purchase of November 5.
23.	Received cash on account from sale of November 8 to Quinn Co.
24.	Sold merchandise on account to Rabel Co., $62,200, terms 1/10, n/30. The cost of the merchandise sold was $36,370.
28.	Paid VISA service fee of $3,420.
30.	Paid Quinn Co. a cash refund of $1,460 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise.