Question

Kindness Company regularly buys sweaters and is allowed a trade discount of 20% and 10%. The entity made a purchase on March 20 and received an invoice with a list price of P900,000, a freight charge of P50,000, and payment terms of net 30 days. What is the cost of the purchase?

Name: kindness company regularly buys sweaters and is allowed a trade discount of 20 and 10 the entity made a purchase on march 20 and received an invoice with a list price of p900000 a freight ch 58765
Uploaded: 2022-05-25T12:28:58-08:00
Duration: 2 min 6 s
Channel: Aya Bianca Into
Description: kindness company regularly buys sweaters and is allowed a trade discount of 20 and 10 the entity made a purchase on march 20 and received an invoice with a list price of p900000 a freight ch 58765

          Kindness Company regularly buys sweaters and is allowed a trade discount of 20% and 10%. The entity made a purchase on March 20 and received an invoice with a list price of P900,000, a freight charge of P50,000, and payment terms of net 30 days. What is the cost of the purchase?

Added by Jonathan G.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Aya Bianca Into

05/25/2022

Step 1

20 * P900,000 Trade discount at 20% = P180,000 Show more…

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Kindness Company regularly buys sweaters and is allowed a trade discount of 20% and 10%. The entity made a purchase on March 20 and received an invoice with a list price of P900,000, a freight charge of P50,000, and payment terms of net 30 days. What is the cost of the purchase?