Calculate the Credit Given for the Partial Payment and the Net

question 68

Short Answer

Calculate the credit given for the partial payment and the net amount due on the invoice, rounding to the nearest cent: $$\begin{array} { l l l l l } \text { Amount of } & \text { Terms of } & \text { Partial } & \text { Credit for Partial } & \text { Net Amount } \\\text { Invoice } & \underline { \text { Sale } } & \underline { \text { Payment } } & \underline { \text { Payment } } & \text { Due } \\\$ 2,865.00 & 2 / 10 , n / 30 & \$ 1,500.00 & &\end{array}$$

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Definitions:

FIFO Method

An inventory valuation method that assumes goods purchased first are the first sold, standing for "First-In, First-Out."

Conversion Costs

The total expenses of direct labor together with manufacturing overheads spent in transforming raw materials into completed products.

Process Cost Accounting System

A bookkeeping mechanism for distributing costs among similar items that are produced in large scale and without interruption.

Equivalent Units of Production

A concept in cost accounting used to assign costs to partially completed goods, calculated by taking the number of units in the production process and converting them into a number of completed units.