Dundaff Plumbing receives an invoice for an order of copper tubing dated May 15, with terms 5/10, 15 Extra. What is the discount date?
Q. 2Fidelity Industries purchased a new truck for 128,000. The company expected the truck to last 5 years or 50,000 miles, with an estimated salvage value of 16,000 at the end of that time. In the first year, the truck was driven 17,600 miles. As the accountant for Fidelity, you can depreciate this truck using the double-declining-balance method or the units of production method. a. Which method of depreciation will allow the largest write-off in the first year? b. How much greater would the depreciation expense be using your answer to (a) above?
Q. 3Pacific Products buys merchandise from a supplier for 1,320 with terms of 4/20, n/60. The invoice is dated October 15. On October 25, Pacific sends a partial payment to the supplier of 900. What is the amount that must be paid on the net date?
Q. 4Sinclair Energy Resources purchased land containing 10.4 million tons of tar sands for 2,704,000. It cost 992,000 to prepare the property for production and the residual value is 189,000. Compute the annual depletion cost if 2,226,000 tons were produced during the year. (Round depletion cost per unit to the nearest cent)
Q. 5On October 20, Revere Products purchased lamps from A&L Imports for 7,500 with terms of 4/15, n/30. On the last day of discount, Revere Products sent in a 3,000 partial payment. a. What is the last day of discount? b. How much credit did Revere get for the partial payment?
Q. 6Striker Mining company paid 13,500,000 for a parcel of land, including the mining rights. In addition, the company spent 1,850,000 to prepare the site for mining operations. When mining is completed, it is estimated that the residual value of the asset will be 1,000,000. Mining engineers estimate that the site contains 5,000,000 tons of coal. a. What is the average depletion cost per ton? b. If 335,000 tons were mined in the first year of operation, what is the amount of the depletion cost?
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