On April 28, The Springfield Company purchased merchandise having a list price of 20,000 from Johnson Brothers. They were given a series of trade discounts of 15/10/5. The terms of the sale were 3/15 EOM. Freight charges of 600 were added to the invoice. a. What is the discount date? b. What is the amount due on the discount date?
Q. 2Forest Agricultural Products purchased new equipment for 359,700 to process tree top oil products. Using MACRS and Tables 17-1 and 17-2 from your text, what is the accumulated depreciation at the end of year 8? (Round to the nearest dollar)
Q. 3Shiva Electronics received an invoice dated July 15 in the amount of 2,300, which included freight charges of 205. The terms of sale were 3/10, n/45. 360 of the merchandise was damaged in transit and must be returned. What is the amount due if paid on July 25?
Q. 4Stowe Lumber purchased new office furniture amounting to 64,300. Using MACRS and Tables 17-1 and 17-2 from your text: a. What is the cost recovery percentage for the end of year 5? b. What is the amount of depreciation expense for year 5? (Round to the nearest dollar)
Q. 5Finney & Company purchased 1,800 of merchandise on May 6. The terms were 2/15 EOM. The sneakers were received on May 20, sent F.O.B. shipping point. Freight charges amounted to 45. a. What is the discount date? b. What payment must be made by that date to take advantage of the discount?
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