Merchandise Subject to Terms 1/10,n/30,FOB Shipping Point,is Sold on Account

question 77

Multiple Choice

Merchandise subject to terms 1/10,n/30,FOB shipping point,is sold on account to a customer for $17,500.The seller issued a credit memorandum for $4,000 prior to payment.What is the amount of the cash discount allowable?

• A)$215
• B)$175
• C)$135
• D)$140

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Definitions:

Increasing Bids

The action of progressively raising the price offer in an auction or competitive bidding situation.

High-value

Referring to products, services, or investments that are considered to be of great worth or quality in comparison to their price or cost.

Oral Auction

A public sale method where goods or services are sold to the highest bidder through verbal bids.

Low-value

Low-value refers to items, services, or transactions that are considered to have minimal worth or importance, either in terms of monetary value or significance.