A Local Company Received Received an Invoice Dated March 8

question 41

Multiple Choice

A local company received received an invoice dated March 8, with terms 2 / 10, n / 30, amounting to $3647. They paid the bill March 15. Find the cash discount and net amount paid.

• A) Cash discount: $36.47; net amount: $3610.53
• B) Cash discount: $0; net amount: $3647
• C) Cash discount: $72.94; net amount: $3574.06
• D) Cash discount: $364.70; net amount: $3282.30

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Definitions:

Intra-entity Gross Profit

Gross profit generated from transactions within the same corporate entity, which may require elimination during consolidation to prevent overstating earnings.

Consolidation Process

This refers to the systematic approach of merging and integrating the financial data of multiple entities within a corporation to produce a unified set of financial statements.

Intra-entity Gross Profit

Profits resulting from transactions within or between entities under common control, not recognized in consolidated financial statements until realized externally.

Consolidation Reporting

The financial reporting process that aggregates the results of multiple entities within a single set of statements, reflective of a group as a single economic entity.