Toy Company purchased merchandise, the invoice,P169,500 includes P9,000 for freight and terms 3/15, n/30. Merchandise in the amount of P24,000 was returned, and the balance of the invoice was paid within the discount period. How much cash was disbursed by Toy in full settlement of the account?*a. P169,500b. P140,920c. P145,000d. P14,000
Question
Toy Company purchased merchandise, the invoice,P169,500 includes P9,000 for freight and terms 3/15, n/30. Merchandise in the amount of P24,000 was returned, and the balance of the invoice was paid within the discount period. How much cash was disbursed by Toy in full settlement of the account?*a. P169,500b. P140,920c. P145,000d. P14,000
Solution
To solve this problem, follow these steps:
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Subtract the returned merchandise amount from the total invoice amount: P169,500 - P24,000 = P145,500. This is the new total after returns.
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Calculate the discount: P145,500 * 3/100 = P4,365. This is the amount of the discount for paying within the 15-day period.
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Subtract the discount from the new total: P145,500 - P4,365 = P141,135.
So, the amount of cash disbursed by Toy in full settlement of the account is P141,135. Therefore, none of the provided options (a. P169,500, b. P140,920, c. P145,000, d. P14,000) is correct.
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