Determine the Amount of Cash Collected on a Credit Sale

question 103

Short Answer

Determine the amount of cash collected on a credit sale with a price of $76,750 and credit terms of 1/10, n/30, assuming the payment was after the discount period had expired.

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Definitions:

Employment-At-Will Rule

A legal doctrine stating that an employment relationship can be terminated by either the employer or the employee at any time, for any reason not prohibited by law, without prior notice.

Implied Covenant

A legal agreement that is not explicitly stated but is assumed to exist due to the nature of the transaction or relationship.

Employee Polygraph Protection Act

A federal law in the United States that prohibits most private employers from using lie detector tests, either for pre-employment screening or during the course of employment, with certain exceptions.

Labor Department

A government department responsible for overseeing labor practices, employment, and workplace safety standards, often involved in creating and enforcing labor laws.