ACCY 202 Lecture 1: ACCY Review
4 Apr 2016
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Bif 2057: feel free to email me with specific questions before the exam. The negotiated exchange price (i. e. , price recorded) is after the trade discount: purpose: offer incentives to purchase in bulk, reward frequent customers, keep true prices hidden from competition, purchase discount. % discount off the negotiated price if payment is made within a specified number of days. 1/10, n/30: purpose: increase sales, encourage early payment, and to increase likelihood of repayment. Pre-paid freight: buyer is legally responsible for shipping, but it is paid by the seller at the time of shipment. Pre-paid freight: seller is legally responsible for shipping, and has paid the shipping at the time of shipment. Freight collect: buyer is legally responsible for shipping and has paid the shipping at delivery. Buyer"s perspective: the shipping is part of the overall cost of obtaining the inventory, and is capitalized to the inventory account (i. e. , product cost).
