i need accoutning help (uts board is dead) (1 Viewer)

[Dj Fuzion]

Hey guys..the presentation i have to do is on this problem...

"Suppose toys r us buys 150,000 worth of lego toys (inclusive of gst) om credit terms of 3/15, n/45. Unfortunatley the goods are damaged in shipment, so toys r us returns 20,000 (orginal amount before any discounts) of the merchandise to lego.

Ho much must toys r us pay lego

1) after the discount period)

2) within the discount period)


I need to do a presne4tation on this and we havent studied the topic as yet so its really hard for me to understand, can somene please help me i'd much appreciate.


p.s- also what else can i talk about besides the answers? like what else details can i use (e.g can i talk about discounts on inventory etc etc?)



thank you thank you to whoever replies.

 

[bscienceboi]

That sounds like one of ACCT1501's midsemester exam questions.

Can someone also explain the credit terms like 3/15, n/45, cause I don't think that was explained to us in our lectures or tutorials :|

 

[Jago]

if you repaid your debt in 15 days you receive a 3% discount, if you repaid debt in 45 days, you get no discount.

 

[Minai]

n/45 means the debt must be paid in 45 days

 

[shyr]

1) toys r us pays 130,000 after discount period (after 15 days of purchase)
2)within discount period it pays 130,000-(130,000*3%)=126,100

 

[seremify007]

p.s- also what else can i talk about besides the answers? like what else details can i use (e.g can i talk about discounts on inventory etc etc?)

The answers everyone else gave you are correct I think- well, at least part 2 (I'm too lazy to calculate part 1).

You could talk about whether or not the discount is worth paying for in advance (ie. opportunity cost), benefits of establishing good credit reputation with suppliers, importance of discounts in reducing COGS, etc...?

(I just pulled that out of my butt btw- really don't know what else you could talk about)