On October 30, Goods with a List Price of $9,200

question 44

Multiple Choice

On October 30, goods with a list price of $9,200 are sold, subject to a trade discount of 25 percent with terms of 2/10, n/30. Payment is received from the customer on November 5. The amount of cash received on November 5 is

• A) $6,160.
• B) $8,770.
• C) $6,762.
• D) $6,036.
• E) $6,900.

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Definitions:

Basing-Point Pricing

Basing-point pricing is a pricing system where the price of goods includes delivery from a specific location, regardless of the actual shipping point to the buyer.

Geographical Locations

Refers to specific places or positions on Earth's surface, identified by coordinates like latitude and longitude.

Freight Expenses

Freight Expenses are costs incurred by a business for transporting goods from one place to another via sea, air, or land.

FOB Factory Pricing

A pricing term indicating the price of goods includes the cost of delivery to the factory's loading dock, with the buyer assuming shipping costs and liability from that point onward.