21) A vendor offers terms of 2/10, n/30. What is the
ANNUAL
interest rate the vendor is charging a buyer who does not pay within 10 days? (Assume there are 360 days in the year.
A) 2%
B) 36%
C) 54%
D) 72%
22) A vendor offers terms of 1/10, n/30. What is the
ANNUAL
interest rate the vendor is charging a buyer who does not pay within 10 days? (Assume there are 360 days in the year.
A) 1%
B) 36%
C) 18%
D) 54%
23) On May 27, Ace Electronics ordered merchandise from Elmo Company. Elmo shipped the merchandise to Ace on May 31, FOB shipping point. The merchandise arrived at Ace's warehouse on June 2. Ace paid for the merchandise on July 1. When should Elmo recognize revenue?
A) May 27
B) May 31
C) June 2
D) July 1
24) On May 27, Ace Electronics ordered merchandise from Elmo Company. Elmo shipped the merchandise to Ace on May 31, FOB destination. The merchandise arrived at Ace's warehouse on June 2. Ace paid for the merchandise on July 1. When should Ace record the purchase?
A) May 27
B) May 31
C) June 2
D) July 1
25) On November 27, Acme, Inc. ordered merchandise from Zenith Company. Zenith shipped the merchandise to Acme on November 29, FOB shipping point. The merchandise arrived at Acme's warehouse on December 1. Acme paid for the merchandise on January 2. When should Zenith recognize revenue?
A) November 27
B) November 29
C) December 1
D) January 2
26) On November 27, Acme, Inc. ordered merchandise from Zenith Company. Zenith shipped the merchandise to Acme on November 29, FOB destination. The merchandise arrived at Acme's warehouse on December 1. Acme paid for the merchandise on January 2. When should Acme record the purchase?
A) November 27
B) November 29
C) December 1
D) January 2
27) On December 12, Occident, Ltd., a company in Singapore, ordered merchandise from San Francisco Exports. The merchandise was shipped to Occident on December 29, FOB shipping point. The merchandise arrived at Occident's warehouse on February 1. Occident paid for the merchandise on March 2. When should San Francisco Exports recognize revenue?
A) December 12
B) December 29
C) February 1
D) March 2
28) On December 12, Occident, Ltd., a company in Singapore, ordered merchandise from San Francisco Exports. The merchandise was shipped to Occident on December 29, FOB destination. The merchandise arrived at Occident's warehouse on February 1. Occident paid for the merchandise on March 2. When should Occident record the purchase?
A) December 12
B) December 29
C) February 1
D) March 2
29) Sailors, Inc. sold $100,000 of merchandise to Breyer, Inc. with terms of 1/10, n/30. Five days later, Breyer returned $10,000 of the merchandise. If Breyer pays within the discount period, how much cash will Sailors receive?
A) $100,000
B) $99,000
C) $90,000
D) $89,100
30) Sailors, Inc. sold $100,000 of merchandise to Breyer, Inc. with terms of 1/10, n/30. If Breyer pays the invoice 20 days after receipt of the invoice, how much cash will Sailors receive?
A) $100,000
B) $99,000
C) $90,000
D) $89,100