19. 8/26th Hawthorne Manufacturing (the \"buyer\") places an order to purchase m
ID: 2483719 • Letter: 1
Question
19. 8/26th Hawthorne Manufacturing (the "buyer") places an order to purchase materials from High Quality Vendor ("HQV"). The materials normally list for $20,000 but due to Hawthorne's buying history the vendor gave them a 10% trade discount and the standard payment terms of 2/10, n/30 Hawthorne anticipates selling the items for $25,000.
8/29th The materials are shipped FOB Shipping point from HQV's warehouse in California with $1,000 of freight collect.
9/4th The materials arrive at Hawthorne's facility. Upon inspection of the goods, half of the order is sent back & not accepted.
9/6th Hawthorne pays the vendor the amount owed
18. 8/26th Hawthorne Manufacturing (the "buyer") places an order to purchase materials from High Quality Vendor ("HQV"). The materials normally list for $20,000 but due to Hawthorne's buying history the vendor gave them a 10% trade discount and the standard payment terms of 2/10, n/30 Hawthorne anticipates selling the items for $25,000.
8/29th The materials are shipped FOB Shipping point from HQV's warehouse in California with $1,000 of freight prepaid.
9/4th The materials arrive at Hawthorne's facility. Upon inspection of the goods, half of the order is sent back & not accepted.
9/6th Hawthorne pays the vendor the amount owed.
How much cash will Hawthorne need to pay the seller in order to settle the account payable in full?
17. 8/26th: Hawthorne Manufacturing (the "buyer") places an order to purchase materials from High Quality Vendor ("HQV"). The materials normally list for $20,000 but due to Hawthorne's buying history the vendor gave them a 10% trade discount and the standard payment terms of 2/10, n/30 Hawthorne anticipates selling the items for $25,000.
8/28th: The materials are shipped FOB Shipping point from HQV's warehouse in California with $1,000 of freight prepaid.
9/5th: The materials arrive at Hawthorne's facility. Upon inspection of the goods, half of the order is sent back & not accepted.
9/12th: Hawthorne pays the vendor the amount owed.
How much cash will Hawthorne need to pay the seller in order to settle the account payable in full?
Explanation / Answer
Answer 19 In the books of Hawthorne Manufacturing Quality Vendor Ledger Debit Credit Date Amount Date Amount 9/4th To Purchases returns $9,000.00 8/29th By Purchases $18,000.00 9/6th To Discount received $180.00 9/6th To Cash $8,820.00 $18,000.00 $18,000.00 Hawthorne need to pay $8820 to the seller in order to settle the account payable in full Answer 18 Quality Vendor Ledger Debit Credit Date Amount Date Amount 9/4th To Purchases returns 9000 8/29th By Purchases 19000 9/6th To Discount received 180 (including prepaid freight of $1000) 9/6th To Cash 9820 19000 19000 Hawthorne need to pay $9820 to the seller in order to settle the account payable in full Answer 17 Quality Vendor Ledger Debit Credit Date Amount Date Amount 9/5th To Purchases returns 9000 8/28th By Purchases 19000 (including prepaid freight of $1000) 9/12th To Cash 10000 19000 19000 Hawthorne need to pay $10000 to the seller in order to settle the account payable in full
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