A cash discount is provided on:Question 2Answera.Salesb.Prompt paymentc.Cash purchasesd.Purchases

Discount received is recorded on which of the following side of a cash book? A. Receipts B. Payments C. Incomes D. Expenditures

Determine which letter is the correct answer. 1. It is a transfer of merchandise from one business or individual to another in exchange for cash or a promise to pay. a. purchases b. sale c. order d. discount 2. When cash is immediately received as full payment for merchandise sold, it is called a what? a. cash discount b. cash discounted c. cash sales d. cash debit 3. A document issued by the seller when collection is made. a. collection receipt b. sales invoice c. purchase order d. check 4. Price reductions granted to customers because of defects or other problems with the unreturned merchandise are called what? a. accounts receivable b. sales returns c. sales allowances d. sales discounts 5. Sales returns and allowances is a contra account of a. sales b. purchases c. allowances d. returns 6. The term when total amount due shall be paid within 30 days from the date of purchased. b. 3/com c. n/30 d. 3/10, 2/15, n/30 a. 3/10, n/30 7. It means 20% trade discount. 3% cash discount if the account is paid within 10 days, net amount due shall be paid within 30 days. a. 3/10, 2/15, n/30 b. n/307 c. 3/10, n/30 d. 20, 3/10, n/30 8. It means 20% and 25% trade discount, 3% cash discount if the account is paid within 10 days, net amount due shall be paid within 30 days. a. 3/10, 2/15, n/30 b. n/30 c. 3/10, n/30 d. 20 and 25, 3/10, n/30 9. A term that the buyer bears the transportation cost. a. Freight-In b. Freight-Out c. discounts d. FOB shipping point 10 A term that the seller bears the transportation cost. a. FOB destination b. Freight collect c. Freight prepaid d. Freight-out 11. A term that the shipping or forwarding company is going to collect the transportation cost to the buyer, though the seller bears the transportation cost. a. FOB shipping point freight collect b. FOB shipping point freight prepaid c. FOB destination freight collect d. FOB destination freight prepaid

Select all that applyIdentify the statements below which summarize what cash discounts are.Multiple select question.A buyer views a cash discount as a purchase discount.Sellers can grant a cash discount to encourage buyers to pay earlier.A reduced payment applies to the discount period.A seller views a cash discount as a sales discount.Cash discounts are described in the credit terms.A reduced payment applies to the credit period.A seller views a cash discount as a purchase discount.

As an incentive for customers to pay their accounts promptly, a business may offer its customers a: Group of answer choices cash discount. trade discount. sales allowance. sales return.

A cash discount can be summarized as a discount given to (buyers/creditors/sellers) to encourage them to pay (earlier/later/less/more).