Exam 11: 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%.

(Multiple Choice)

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Question 41

3/10, 1/15, n/30 means that a 3% cash discount is available from day 11 to day 15.

(True/False)

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Question 42

Bill's TV buys a television from a wholesaler with a list price of $600 and a trade discount of 32%. What are the amount of the trade discount and the net price of the television?

(Short Answer)

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Question 43

A local RadioShack store wants to buy a new line of plasma TVs. Manufacturer A offers chain discounts of 18/12, and Manufacturer B offers terms of 17/13. The single equivalent discount rate of ? is the best deal.

(Multiple Choice)

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Question 44

An invoice dated March 12 in the amount of $50,000 is received by Reliance Corporation on March 16. Cash discount terms on the invoice are 3/10, n/30. On March 16 Reliance mails a check in the amount of $8,000 as partial payment on the invoice. The outstanding balance owed on the invoice is:

(Multiple Choice)

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Question 45

J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 FOB Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee's pays within the discount period, how much will Lee's pay J.C. Penney?

(Multiple Choice)

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Question 46

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

(True/False)

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Question 47

(Short Answer)

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Question 48

Feb. 15 is 71 days from Nov. 29.

(True/False)

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Question 49

The complement of 25% is 52%.

(True/False)

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Question 50

A chain discount is a series of three or more successive discounts.

(True/False)

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Question 51

Marvin Gate bought some fencing from a wholesaler for $6,000. The wholesaler offered a trade discount of 35%. What was the original price? (Round to the nearest cent.)

(Short Answer)

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Question 52

Sellers' catalogs list only the net price.

(True/False)

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Question 53

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:

(Multiple Choice)

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Question 54

The Blue Manufacturer sells radios to Bob's Discount Outlet. Radios carry a trade discount of 45%. If the price of a radio is $90, what does Bob pay?

(Short Answer)

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Question 55

2/10, n/30 is an example of:

(Multiple Choice)

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Question 56

Trade discounts sometimes are taken on freight.

(True/False)

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Question 57

Goods sold after the 25th of the month with terms of 2/10, EOM results in the discount period being extended 10 days longer.

(True/False)

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Question 58

Chain discounts sometimes may be added together.

(True/False)

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Question 59

60 days from Nov. 19 is:

(Multiple Choice)

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Question 60

Showing 41 - 60 of 101

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%.

3/10, 1/15, n/30 means that a 3% cash discount is available from day 11 to day 15.

Bill's TV buys a television from a wholesaler with a list price of $600 and a trade discount of 32%. What are the amount of the trade discount and the net price of the television?

A local RadioShack store wants to buy a new line of plasma TVs. Manufacturer A offers chain discounts of 18/12, and Manufacturer B offers terms of 17/13. The single equivalent discount rate of ? is the best deal.

An invoice dated March 12 in the amount of $50,000 is received by Reliance Corporation on March 16. Cash discount terms on the invoice are 3/10, n/30. On March 16 Reliance mails a check in the amount of $8,000 as partial payment on the invoice. The outstanding balance owed on the invoice is:

J.C. Penney of Boston sold office equipment for $12,000 to Lee's of San Diego. Terms of the sale are 3/10, n/30 FOB Boston. J.C. Penney has agreed to prepay freight $300. Assuming Lee's pays within the discount period, how much will Lee's pay J.C. Penney?

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

Feb. 15 is 71 days from Nov. 29.

The complement of 25% is 52%.

A chain discount is a series of three or more successive discounts.

Marvin Gate bought some fencing from a wholesaler for $6,000. The wholesaler offered a trade discount of 35%. What was the original price? (Round to the nearest cent.)

Sellers' catalogs list only the net price.

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:

The Blue Manufacturer sells radios to Bob's Discount Outlet. Radios carry a trade discount of 45%. If the price of a radio is $90, what does Bob pay?

2/10, n/30 is an example of:

Trade discounts sometimes are taken on freight.

Goods sold after the 25th of the month with terms of 2/10, EOM results in the discount period being extended 10 days longer.

Chain discounts sometimes may be added together.

60 days from Nov. 19 is:

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