A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $500, was added to the invoice amount. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

Merchandise inventory is reported in the long-term assets section of the balance sheet.

On July 9, Mifflin Company receives an $8,500, 90-day, 8% note from customer Payton Summers as payment on account. Compute the amount due at maturity for the note. (Use 360 days a year.)

Majesty Productions accepted a $7,200, 120-day, 6% note from Swartz Studio on March 1. On the date the note matures, Swartz is unable to pay, but Majesty intends to continue collection efforts. What entry should Majesty record on the maturity date for this dishonored note?

A set of procedures and approvals for verifying, approving, and recording obligations for eventual cash disbursement, and for issuing checks for payment only of verified, approved, and recorded obligations is referred to as a(n):

Merchandise inventory is reported in the long-term assets section of the balance sheet.

On October 12 of the current year, a company determined that a customer’s account receivable was uncollectible and that the account should be written off. Assuming the allowance method is used to account for bad debts, what effect will this write-off have on the company’s net income and total assets?

A merchandising company’s operating cycle begins with the purchase of merchandise and ends with the collection of cash from the sale.

The itemized statement of goods prepared by a vendor listing the customer’s name, items sold, sales prices, and terms of the sale is called the:

A service company earns net income by buying and selling merchandise.