Author Question: If merchandise bought on account has a list price of 5,000, with a trade discount of 25 and credit ... (Read 104 times)

vicotolentino · **on:** Jul 6, 2018

If merchandise bought on account has a list price of 5,000, with a trade discount of 25 and credit terms of 1/10, n/30, what is the amount to be credited to Accounts Payable?
a. 5,000
b. 3,750
c. 3,712.50
d. 3,787.50

Question 2

The city of Brittainville's Special Revenue Fund levied 350,000 in taxes, of which 1 was expected to be uncollectible during the current year.

Also during the year, the fund collected 7,500 of interest revenue and 50,000 was transferred from the General Fund. As a result of these transactions fund balance will increase by
A. 407,500.
B. 404,000.
C. 357,500.
D. 354,000.