Determine the Total Cost of a Purchase Paid for Within

question 116

Short Answer

Determine the total cost of a purchase paid for within the discount period with an invoice price of $7,000 and credit terms of 2/10,n/30 when $1,500 has already been returned for credit.The goods were purchased with freight terms of F.O.B shipping point and freight of $50.
$ ________

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Definitions:

Contribution Margin Report

A financial report detailing the variable costs deducted from net sales to determine the contribution margin, used in managerial accounting to make decisions.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from total revenue.

Manufacturing Margin

The difference between the sales revenue of manufactured goods and the direct costs associated with producing those goods.

Total Variable Costs

All costs that vary with the level of production or sales, including materials, labor, and overhead expenses.