Exam 7: Discounts: Trade and Cash

A bedroom set lists for $12,000 and carries a trade discount of 30%. Freight (FOB shipping point) of $150 is not part of list price. Calculate the delivered price of the bedroom set including the freight. Assume a cash discount of 2%.

The complement of 10% is 90%, or in decimal .90.

The single equivalent discount rate of 9/5/4 is .17008.

The complement of 35% is:

Amount of trade discount is represented by the:

Those making partial payments are not allowed to take a cash discount.

Roland Corporation buys stoves from a wholesaler. The list price of a stove is $900, with a trade discount of 30%. The net price is:

If the net price of a stove is $900 and the trade discount rate is 40%, the list price is:

The trade discount results if the customer pays the bill within the discount period.

Amounts of trade discounts are not fixed.

A local college bookstore paid a net price of $12,500 for textbooks for the coming semester. The publisher offered a trade discount of 20%. The publisher's original list price was:

Walgreens is offered a chain discount on cosmetics from Libby Corp. of 8/5/2; Roma Company offers a chain discount of 7/6/4. What is the highest discount offered?

A manufacturer of skis offered chain discounts of 10/5/4 to many of its customers. Joe Jones ordered skis that had a total list price of $149,500. The amount of the trade discount is:

Cash discounts are not taken on freight or returned goods.

Cash discounts are:

The complement of 25% is 52%.

A net price equivalent rate of .74225 means that for each $10 the buyer's cost will be approximately 74 cents.

Net price times single equivalent discount rate equals amount of trade discount.

Knuckles on your hand represent months with 30 days.

Joanne's Dress Shop received an invoice dated July 25 for $1,400, with terms of 2/10, 1/15, n/60. On August 8, Joanne's Dress Shop sent a partial payment of $750. The actual amount that should be credited is: