Exam 7: Discounts: Trade and Cash

Calculate the Last Day of Discount Period and End of Credit Period based on the information given below. Date of Date Goods Last Day of End of Credit Invoice Received Terms Discount Period Period September 5 3/10,n/30 (A) (B) May 4 3/10, EOM (C) (D) April 26 3/10, EOM (E) (F) January 1 March 3 3/10,n/30, ROG (G) (H)

Ashley Furniture received an invoice for $4,850, dated May 19. Terms were 2/15, net 30 days. How much will Ashley pay if the invoice was electronically paid on June 2?

Jones Advertising Agency received a $3,000 invoice dated June 8. Terms were 2/10, 1/15, n/60. On June 22 Jones Advertising sent a $1,600 partial payment. What credit should Jones Advertising receive? What is Jones's outstanding balance? Round to the nearest cent.

An invoice for office furniture for $1,210.88 with terms of 2/10, n/60 is dated October 3. (A)What is the last date on which the cash discount may be taken? (B)If paid within discount period, how much is the cash discount? (C)If the discount is missed, on what day does the credit period end?

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.)

Calculate the Last Day of Discount Period and End of Credit Period based on the information given below. Date of Date Goods Last Day of End of Credit Invoice Received Terms Discount Period Period Oct 7 2/10,n/30 (A) (B) June 12 2/10, EOM (C) (D) July 29 2/10, EOM (E) (F) March 8 July 2 2/10,n/30, ROG (G) (H)

Match the following terms with their definitions. -ROG

Black & Decker Manufacturing sold a set of saws to True Value Hardware. The list price was $3,800. Black & Decker offered a chain discount of 8/3/1. The net price of the saws is:

Invoice: $600 Terms: 2/10, 1/20, n/30 Invoice date: May 5 Payment amount: $400 Date paid: May 17 A)Amount credited: ________ B)Balance outstanding: ________

Sellers' catalogs list only the net price.

Invoice: $1,000 Terms: 3/10, n/30 Invoice date: May 5 Payment amount: $800 Date paid: May 9 A)Amount credited: ________ B)Balance outstanding: ________

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:

An invoice dated 5/19/xx received by Jones Supply indicated a balance of $17,000. This balance included a freight charge of $1,000. Terms of the bill were 5/10, 4/30, n/60. Assuming Jones pays off the bill on June 4, he pays:

2/10, n/30 means the credit period is 30 days from the end of the discount period.

60 days from Nov. 19 is:

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

Gross invoice (includes freight): $1,000 Freight: $100 Date of invoice: 8/11 Terms: 2/10, 1/15, n/30 Date of payment: 8/30 Discount: (A) Net Price: (B)

The net price equivalent rate should be rounded to the nearest hundredth.

Match the following terms with their definitions. -Discount period

2/10, EOM means the credit period ends 20 days after the end of the discount period.