31) Zenith Company sold $10,000 of merchandise to Nadir Company, with terms of 2/10, n/30. Five days later, Nadir returned $1,000 of the merchandise. If Nadir does
NOT
pay within the discount period, how much cash will Zenith receive?
A) 10,000
B) $9,800
C) $9,000
D) $8,820
32) Nadir Company sold $2,000 of merchandise to Acme Company, with terms of 3/10, n/30. Five days later, Acme returned $500 of the merchandise. If Acme pays within the discount period, how much cash will Nadir receive?
A) $2,000
B) $1,940
C) $1,500
D) $1,455
33) Nadir Company sold $2,000 of merchandise to Acme Company, with terms of 3/10, n/30. Five days later, Acme returned $500 of the merchandise. If Acme does
NOT
pay within the discount period, how much cash will Nadir receive?
A) $2,000
B) $1,940
C) $1,500
D) $1,455
34) Ace Company sells goods FOB destination. The shipping costs ________.
A) will not be paid by Ace
B) appear on Ace’s income statement as a decrease in Net sales
C) appear on Ace’s income statement as an Operating expense
D) appear on Ace’s income statement as an increase in Cost of goods sold
35) Ace Electronics sold $350 of merchandise to a customer on account. The sales tax was 6%. How much sales revenue did Ace earn?
A) $350
B) $371
C) $329
D) $0
36) Inside Outfitters sold $200 of merchandise to a customer for cash. The sales tax was 8%. How much cash did Inside Outfitters receive?
A) $200
B) $16
C) $216
D) $184
37) Inside Outfitters sold $200 of merchandise to a customer for cash. The sales tax was 8%. How much sales revenue did Inside Outfitters earn?
A) $200
B) $0
C) $216
D) $184
38) Acme Enterprise sold $150 of merchandise to a customer for cash. The sales tax was 7%. How much cash did Inside Acme receive?
A) $10.50
B) $160.50
C) $150.00
D) $139.50
39) Acme Enterprise sold $150 of merchandise to a customer for cash. The sales tax was 7%. How much sales revenue did Acme earn?
A) $10.50
B) $160.50
C) $150.00
D) $139.50
40) Which statement below best explains the credit terms of 2/15, n/30?
A) The buyer will receive a 15 percent discount if it pays within two days of the purchase.
B) The buyer will receive a 15 percent discount if it pays within thirty days.
C) The buyer will receive a 2 percent discount if it pays within fifteen days.
D) The buyer will receive a 2 percent discount if it pays within thirty days.