Question 1

Complete the following:
 $$\begin{array} { | l | l | l | l | } 
\hline\text { Item } & \text { List Price } & \text { Trade Discount } & \text { Net Price } \
\hline \text { Television } & \$ 900 & 30 \% & ? \
\hline
\end{array}$$

Accepted Answer

The answer of Complete the following:
 \[\begin{array} { | l...

Question 2

A manufacturer of ice skates offered a chain discount of 7/5/1. Bobby's Sport Shop ordered 30 pairs of skates that had a list price of $925. What was the amount of the trade discount?

Accepted Answer

Multiply the complements of the chain di

Question 3

Calculate the End of Discount Period and End of Credit Period.
 $\begin{array}{|c|c|c|c|c|}
\hline \text { Date of Invoice } & \text { Terms } & \begin{array}{l}
\text { Date Goods } \
\text { Received }
\end{array} & \begin{array}{l}
\text { End of } \
\text { Discount } \
\text { Period }
\end{array} & \begin{array}{l}
\text { End of Credit } \
\text { Period }
\end{array} \
\hline \text { June } 19 & 3 / 10,n / 30 \mathrm{ROG} & \text { July } 8 & ? & ? \
\hline
\end{array}$

Accepted Answer

The answer of Calculate the End of Discount Period and...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Bloomberg's is offered the following chain discount(s); what is the lowest net price equivalent rate it will pay?
 $$\begin{array} { | l | l | } 
\hline \text { Company A } & \text { Company B } \
\hline 7 / 9 / 13 & 8 / 6 / 10 \
\hline
\end{array}$$

Accepted Answer

The answer of Bloomberg's is offered the following chain discount(s);...

Question 6

A radio with a net price of $700 and a trade discount rate of 30% has a list price of $1,000.

Accepted Answer

A) True 
 B)False

Question 7

Calculate the Net Price Equivalent Rate in Decimals, Single Equivalent Rate in decimals, Amount of Trade Discount and Net Price based on the information given below.

Accepted Answer

Multiply .85 and .80 to get .68 as a ne

Question 8

The complement of 25% is 52%.

Accepted Answer

A) True 
 B)False

Question 9

Mel's furniture received an invoice dated September 27 for five bedroom sets at $3,000 each. The invoice indicated a trade discount of 5/8/3. The seller of the furniture prepaid the freight of $200. Terms were 2/10 EOM. Assuming Mel pays on November 2, what amount would be paid? (Be sure to include the freight cost.)

Accepted Answer

The trade discount rate is equal to .95

Question 10

Match the following terms with their definitions.
-Terms of sale

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Question 11

The net price equivalent rate of 10/20/5 is 0.684.

Accepted Answer

A) True 
 B)False

Question 12

The single equivalent discount rate of 9/5/4 is 0.17008.

Accepted Answer

A) True 
 B)False

Question 13

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:

Accepted Answer

A) $8,247.42 
B) $41,752.58 
C) $8,240.00 
D) $41,760.00 
E) None of these 
A) $8,247.42 
B) $41,752.58 
C) $8,240.00 
D) $41,760.00 
E) None of these

Question 14

Chain discounts sometimes may be added together.

Accepted Answer

A) True 
 B)False

Question 15

Knuckles on your hand represent months with 30 days.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is usually not true about customer catalogs?

Accepted Answer

A) Contain list price 
B) Completely updated once a year with a new revised catalog 
C) Updated by discount sheets 
D) Trade discount amounts will differ from product to product 
E) None of these 
A) Contain list price 
B) Completely updated once a year with a new revised catalog 
C) Updated by discount sheets 
D) Trade discount amounts will differ from product to product 
E) None of these

Question 17

Match the following terms with their definitions.
-Example of ordinary dating

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Question 18

Match the following terms with their definitions.
-List price

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Question 19

2/10, EOM means that the cash discount period ends on the tenth day of the month that follows the sale, as long as the invoice is dated 25th or earlier in the month.

Accepted Answer

A) True 
 B)False

Question 20

Match the following terms with their definitions.
-Net price equivalent rate

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Exam 7: Discounts: Trade and Cash

Complete the following: Item List Price Trade Discount Net Price Television \ 900 30\% ?

A manufacturer of ice skates offered a chain discount of 7/5/1. Bobby's Sport Shop ordered 30 pairs of skates that had a list price of $925. What was the amount of the trade discount?

Calculate the End of Discount Period and End of Credit Period. Date of Invoice Terms Date Goods Received End of Discount Period End of Credit Period June 19 3/10,n/30 July 8 ? ?

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

Bloomberg's is offered the following chain discount(s); what is the lowest net price equivalent rate it will pay? Company A Company B 7/9/13 8/6/10

A radio with a net price of $700 and a trade discount rate of 30% has a list price of $1,000.

Calculate the Net Price Equivalent Rate in Decimals, Single Equivalent Rate in decimals, Amount of Trade Discount and Net Price based on the information given below.

The complement of 25% is 52%.

Match the following terms with their definitions. -Terms of sale

The net price equivalent rate of 10/20/5 is 0.684.

The single equivalent discount rate of 9/5/4 is 0.17008.

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:

Chain discounts sometimes may be added together.

Knuckles on your hand represent months with 30 days.

Which of the following is usually not true about customer catalogs?

Match the following terms with their definitions. -Example of ordinary dating

Match the following terms with their definitions. -List price

2/10, EOM means that the cash discount period ends on the tenth day of the month that follows the sale, as long as the invoice is dated 25th or earlier in the month.

Match the following terms with their definitions. -Net price equivalent rate

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