A company records the following journal entry: debit Cash $1,470, debit Sales Discounts $30, and credit Accounts Receivable $1,500. This means that a customer has taken what percentage cash discount for early payment?
A. 10%
B. 5%
C. 2%
D. 15%
E. 1%
Answer: C
You might also like to view...
Current GAAP requires a company to disclose the fair value of its financial instruments and to disclose all significant concentrations of credit risk due to its financial instruments. The FASB's rationale for this disclosure includes allowing readers to
A) better identify major customers. B) compute each company's risk. C) better determine a company's financial flexibility. D) compute liquidity ratios.
Billable hours are frequently used to determine compensation in large law firms
Indicate whether the statement is true or false
The ________ account is credited to adjust for underallocated overhead costs
A) Cost of Goods Sold B) Sales Revenue C) Manufacturing Overhead D) Finished Goods Inventory
Universal Financial, Inc. has total current assets of $1,200,000; long-term debt of $600,000; total
current liabilities of $500,000; and long-term assets of $800,000. How much is the firm's net working capital? A) $900,000 B) $600,000 C) $700,000 D) $1,000,000