Maurice Tutor

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Teaching Since: May 2017
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  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 30 Jul 2017 My Price 6.00

Seals Inc.

Discounts

Each of the following situations involves the use of discounts.

1. How much discount may Seals Inc. take in each of the following transactions? What was the

annualized interest rate?

a. Seals purchases inventory costing $450, 2/10, n/40.

b. Seals purchases new office furniture costing $1,500, terms 1/10, n/30.

2. Calculate the discount rate that Croft Co. received in each of these transactions.

a. Croft purchased office supplies costing $200 and paid within the discount period with a

check for $196.

b. Croft purchased merchandise for $2,800. It paid within the discount period with a check for

$2,674.

Answers

Maurice Tutor
(5)
Status NEW Posted 30 Jul 2017 03:07 PM My Price 6.00

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