CAP财会英语课程7.pptVIP

Accounting English Accounting English Questions What is meant by “cash discounts” ? Explain the terms:2/10,1/20,n/30. Who would bear the freight cost and who would remit to the freight company under each of the following selling terms? F.O.B. shipping point, freight prepaid. F.O.B. shipping point, freight collect. F.O.B. destination, freight collect. F.O.B. destination, freight prepaid. Terms Credit terms 1/10,n/30; Cash discounts are calculated on the billed price of merchandise retained in a purchase or sale. e.g. sales:10,000 ; sales returns and allowances: 1,000; “ 2/10,n/30”; Cash discounts =(10,000-1,000)*2%=180 Question(1) What is meant by “cash discounts” ? “Cash discounts” is refer to as the deduction of the invoice price. Question(2) Explain the terms:2/10,1/20,n/30. The terms mean that the full sales price (less any returns) is due in 30days from the date of sale; 2% cash discount will be granted if the payment is made within 10 days; if the payment is made beyond 10 days but within 20 days, the buyer may deduct 1% from the invoice price. Question(3a) F.O.B. shipping point, freight prepaid. The buyer would bear the freight cost and the seller would remit it to the freight company. Question(3b) b. F.O.B. shipping point, freight collect. The buyer would bear the freight cost and the buyer would remit it to the freight company. Question(3c) c. F.O.B. destination, freight collect. The seller would bear the freight cost and the buyer would remit it to the freight company. Question(3d) d. F.O.B. destination, freight prepaid. The seller would bear the freight cost and the seller would remit it to the freight company. Lesson Seven An illustration — Exercise 1 (1) Lesson Seven An illustration — Exercise 1 (2) Cash 20 000 Office Equipment 3 000 Surveying Equipment 45 000 Alan Meaken, Capital 68 000 Lesson Seven An illustration