Accounting Question:?

Question

39. A retailer purchases merchandise with a catalog list price of $10,000.  The retailer receives a 25% trade discount and credit terms of 2/10, n/30.  What amount should the retailer debit to the Merchandise Inventory account? (Points: 4)

       $7,500

       $10,000

       $9,800

       $7,350

40. A retailer purchases merchandise with a catalog list price of $10,000.  The retailer receives a 25% trade discount and credit terms of 2/10, n/30.  How much cash will be needed to pay this invoice within the discount period? (Points: 4)

       $10,000

       $7,500

       $9,800

       $7,350

52. During times of rising prices, which of the following is not an accurate statement? (Points: 4)

       Average costing will yield results that are between those of FIFO and LIFO

       LIFO will result in a higher cost of goods sold than FIFO

       FIFO will result in a higher net income than LIFO

       LIFO will result in high income taxes than LIFO

Answer 1

39. A retailer purchases merchandise with a catalog list price of $10,000.  The retailer receives a 25% trade discount and credit terms of 2/10, n/30.  What amount should the retailer debit to the Merchandise Inventory account? (Points: 4)

      $7,500

40. A retailer purchases merchandise with a catalog list price of $10,000.  The retailer receives a 25% trade discount and credit terms of 2/10, n/30.  How much cash will be needed to pay this invoice within the discount period? (Points: 4)

              $7,350

52. During times of rising prices, which of the following is not an accurate statement? (Points: 4)

              LIFO will result in higher income taxes than FIFO (I think there's a typo in your question)