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Feine Company sells merchandise on account

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Feine Company sells merchandise on account 1. A sales discount does not a. provide the purchaser with a cash saving. b. reduce the amount of cash received from a credit sale. c. increase a contra-revenue account. d. increase an operating expense account. 2. Company A sells $500 of merchandise on account to Company B with credit terms of 2/10, n/30. If Company B remits a check taking advantage of the discount offered, what is the amount of Company B’s check? a. $350 b. $490 c. $450 d. $400 3. Hale Company sells merchandise on account for $1,500 to Kear Company with credit terms of 2/10, n/30. Kear Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount period. What is the amount of the check? a. $1,470 b. $1,476 c. $1,200 d. $1,176 4. Feine Company sells merchandise on account for $2,000 to Tang Company with credit terms of 2/10, n/30. Tang Company returns $300 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Feine Company make upon receipt of the check? a. Cash ………………………………………………………………………… 1,700 Accounts Receivable ………………………………………….. 1,700 b. Cash ………………………………………………………………………… 1,666 Sales Returns and Allowances…………………………………….. 334 Accounts Receivable ………………………………………….. 2,000 c. Cash ………………………………………………………………………… 1,666 Sales Returns and Allowances…………………………………….. 300 Sales Discounts…………………………………………………………. 34 Accounts Receivable ………………………………………….. 2,000 d. Cash ………………………………………………………………………… 1,960 Sales Discounts…………………………………………………………. 40 Sales Returns and Allowances …………………………….. 300 Accounts Receivable ………………………………………….. 1,700 5. Which of the following would not be classified as a contra account? a. Sales b. Sales Returns and Allowances c. Accumulated Depreciation d. Sales Discounts Business Management Assignment Help, Business Management Homework help, Business Management Study Help, Business Management Course Help

Feine Company sells merchandise on account

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