Grinn, Inc offers terms of 2/10, n/30 to credit customers. Great Buy Corp purchased 100 tile cutters with a list price of $20 each on March 5, 2016, on account. If Great Buy Corp pays the amount of the invoice for its purchase on March 14, 2016, how much cash will Grinn receive from Great Buy Corp?
a. $1,764
b. $2,000
c. $1,800
d. $1,960
d
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When a job costing $5,000 is completed, the following journal entry is made:
A) Finished Goods 5,000Cost of Goods Sold 5,000 B) Cost of Goods Sold 5,000Finished Goods 5,000 C) Work-in-Process 5,000Finished Goods 5,000 D) Finished Goods 5,000Work-in-Process 5,000 E) Cost of Goods Sold 5,000Sales 5,000
SCENARIO-BASED QUESTIONS Retail Store Online Survey As marketing director for a large retail clothing chain for young people, it is your job to collect data on the buying habits of 18- to 24-year-old customers. You want each of your customers to
complete an online survey within five days after the date of purchase. This information provides the current information you need for product development, marketing, and customer service. Required: Write a persuasive message asking buyers to complete the online survey.
On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Jepson uses the periodic inventory system and the gross method of accounting for purchases. Jepson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Jepson makes on September 18 is:
A.
| Accounts payable | 5,800 | |
| Merchandise inventory | 116 | |
| Cash | 5,684 |
B.
| Accounts payable | 5,800 | |
| Purchases discounts | 116 | |
| Cash | 5,684 |
C.
| Purchases | 5,684 | |
| Cash | 5,684 |
D.
| Cash | 5,684 | |
| Purchases discounts | 116 | |
| Accounts payable | 5,800 |
E.
| Cash | 5,684 | |
| Accounts receivable | 5,684 |
Suppose a firm relies exclusively on the payback method when making capital budgeting decisions, and it sets a 4-year payback regardless of economic conditions. Other things held constant, which of the following statements is most likely to be true?
A. It will accept too many short-term projects and reject too many long-term projects (as judged by the NPV). B. It will accept too many long-term projects and reject too many short-term projects (as judged by the NPV). C. The firm will accept too many projects in all economic states because a 4-year payback is too low. D. The firm will accept too few projects in all economic states because a 4-year payback is too high. E. If the 4-year payback results in accepting just the right set of projects under average economic conditions, then this payback will result in too few long-term projects when the economy is weak.