Willetta Company purchases inventory for $10,000 with terms 3/10, n/30. It then returns $2,000 of the inventory purchased to the supplier and also receives an allowance for defective inventory of $100. The company pays the amount due within the discount period. What is the amount of the discount that will be taken?

A. $240
B. $297
C. $300
D. $237


Answer: D

Business

You might also like to view...

Retailers prefer digital interactive point-of-purchase displays that consumers will notice and that have the capability of changing the message

Indicate whether the statement is true or false

Business

During the testing of a year end bank reconciliation, an auditor noticed that the majority of checks listed as outstanding at year-end had not cleared the bank. Which of the following is a likely explanation?

a. A high probability of kiting. b. A high probability of lapping. c. The year-end cash disbursements records had been closed prior to year-end. d. The year-end cash disbursements records had been held open past year-end.

Business

NSF checks from customers should be a(n) ________ on a bank reconciliation.

A. subtraction from the book balance B. addition to the bank balance C. subtraction from the bank balance D. addition to the book balance

Business

Which of the following factors is not listed in your text as affecting a direct assessment measure?

a. The measurer b. The attribute being measured c. Instruments available for the measuring task d. The individual who will use the measure

Business