NewTech Medical Devices is a medical devices wholesaler that commenced business
ID: 2515949 • Letter: N
Question
NewTech Medical Devices is a medical devices wholesaler that commenced business on June 1, 2019. NewTech Medical Devices purchases merchandise for cash and on open account. In June 2019, NewTech Medical Devices engaged in the following purchasing and cash payment activities: DATE TRANSACTIONS 2019 June 1 Issued Check 101 to purchase merchandise, $4,500 3 Purchased merchandise for $1,700 from BioCenter Inc., Invoice 606: 5 Purchased merchandise for $5,850, plus a freight charge of $110,from 9 Paid amount due to Biocenter Inc. tor purchase of June 3, less 10 Received Credit Hemorandum 227 from New Concepts Corporation for terms 2/10, n/30. New Concepts Corporation, Invoice 1011, terms 2/10,n/30. discount, Check 102 damaged merchandise totaling $150 that was returned; the goods were n Purchased merehandise for $1,680 fron Biocenter Ine.. Invoice 612; 14 Paid amount due to New Concepts Corporation for Invoice 1011 of June 15 Purchased merchandise with a list price of $9,200 and trade discount# purchased on Invoice 1011, dated June 5. terms 2/10, n/30. S, less the return of June 10 and less the cash discount, Check 103 of 20 percent and 15 percent from Park Research, Invoice 1029, terms n/30. 20 Issued Check 104 to purchase merchandise, $3,000. 25 Returned merchandise purchased on June 20 as defective, receiving a cash refund of $280 30 Purchased nerchandise tor 53,200, plus a freight charge of s8s, rom New concepts Corporation, Invoice 10803 terms 2/10, n/30. Required:Explanation / Answer
June 15 -- Trade Discount
Total Trade discount received from park research = 20+15 = 35%
List price = $9,200
Total Amount of Trade Discount = 9,200*35% = $3,220