Question

1. Credit term of 1/100, n/30 mean

1. A 1% discount is allowed if the invoice is paid within 10 days, or the entire net amount is due within 30 days
2. A 1% discount is allowed if the invoice is paid within 30 days
3. A 10% discount is allowed if the bills is paid within 1 day of receipt, or the entire amount is due within 30 days
4. None of the above.

2. . The perpetual inventory system involves

1. Counting goods at regular intervals
2. Estimating the number of goods on hand
3. Maintaining a running balance of all inventory items
4. Estimating the cost of the goods on hand

3. what function of Sage 50 will a firm use to record the return of damaged goods to a vendor?

1. Sales/Invoicing
2. Receive Money
3. Vendor Credit Memos
4. Payments.

Answer 1

Answer 1: Your required answer is option A i.e. A 1% discount is allowed if the invoice is paid within 10 days, or the entire net amount is due within 30 days

Note: in question it is given 100 so i am assuming it is misprint.

Answer 2: Your required answer is option A i.e. Counting goods at regular intervals

In perpetual Inventory system the Physical counting of inventory is made at any specified interval generally once in year.

Answer 3: Your required answer is option C i.e. Vendor Credit Momos

Vendor credit momos allowed to process refund to vendor if there is any discripency or good retuen are there. However they can also make directly payment to vendor but in general it is not done in actual practice the balance is adjusted with their outstanding balance.

I hope this clear your doubt.

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