Ask Question
BusinessBusiness
24 February, 20:09

Leo Corp has received an invoice for $6,500 with terms of 3/15, n/45 and uses the net method to record purchases. If Leo pays the invoice on the seventeenth day, the Cash account will be:

A. debited for $6,305

B. credited for $6,500

C. credited for $195

D. credited for $6,305

+3
Answers (1)
  1. 24 February, 23:20
    0
    The correct option is B

    Explanation:

    An amount of $6500 has been received by the Leo Corp. As given in the question that the payment is done on 17th day that is, after the discount period of (15 days), it has to paid full cash on that day. So amount paid will be $6500 on that day. Hence Cash Account will be credited with an amount of $6500.

    Therefore, the correct option from the given options is B) that is Credit for $6,500.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Leo Corp has received an invoice for $6,500 with terms of 3/15, n/45 and uses the net method to record purchases. If Leo pays the invoice ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The equal pay act, as codified in the civil rights act of 1991 permits an employer to pay females less than males for the performance of jobs that require equal skill, effort and responsibility, provided that
Answers (1)
What is the ability of an organization to tailor its products or services to the customer's specifications?
Answers (1)
Which of the following is TRUE regarding the persuasive business message? A. The persuasive business message generally relies more heavily on logical than on emotional appeal. B.
Answers (1)
Answer the following questions, which relate to the aggregate expenditures model: Instructions: Enter your answer as a whole number. a. Given the following: Ca = $120, Ig = $60, Xn = - $10, and G = $30, what is the economy's equilibrium GDP? b.
Answers (1)
What is collateral? A) A finance charge B) a specific type of home loan C) an asset or group of assets that are linked to a loan D) a down payment
Answers (2)
New Questions in Business
You should not pursue a career in an industry that has experienced even a small decline in employment growth. True False
Answers (1)
Header Motor, Inc., paid a $3.91 dividend last year. At a constant growth rate of 7 percent, what is the value of the common stock if the investors require a 16 percent rate of return? The value of the common stock is $ nothing.
Answers (1)
Beerbo Corporation purchased Mitter Lite Company three years ago. As a result of the acquisition, Beerbo recorded goodwill of $400,000 at that time and created the Mitter Lite Division (MLD).
Answers (1)
Ashley's Coffee Shop makes a blend that is a mixture of two types of coffee. Type A coffee costs Ashley $4.30 per pound, and type B coffee costs $5.90 per pound. This month, Ashley made 142 pounds of the blend, for a total cost of $749.80.
Answers (1)
Describe a decision you made that wasn't popular and how you handled implementing it for entry level
Answers (1)
Home » Business » Leo Corp has received an invoice for $6,500 with terms of 3/15, n/45 and uses the net method to record purchases. If Leo pays the invoice on the seventeenth day, the Cash account will be: A. debited for $6,305 B. credited for $6,500 C.
Sign Up Forgot Password?