Question 1

2/10, n/30 is an example of the ordinary dating method.

Accepted Answer

A) True 
 B)False

Question 2

Net price plus amount of trade discount equals list price.

Accepted Answer

A) True 
 B)False

Question 3

Accepted Answer

The answer of ...

Question 4

Gross invoice (includes freight): $500
Freight: $100
Date of invoice: 9/10
Terms: 3/10, 1/15, n/30
Date of payment: 9/22
A) Discount: _______
B) Net price: _______

Accepted Answer

The answer of Gross invoice (includes freight): $500
Freight: $100
Date of...

Question 5

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:

Accepted Answer

A)  $16,762.27 
B)  $16,000.55 
C)  $15,762.72 
D)  $16,000.84 
E)  None of these

Question 6

Calculate (A) amount to be credited and (B) balance outstanding:
Invoice: $3,000; Terms 2/10, n/30
Invoice date: July 5
Payment amount $600
Date paid: July 14
A. ____________
B. ____________

Accepted Answer

The answer of Calculate (A) amount to be credited and...

Question 7

Accepted Answer

The answer of ...

Question 8

Aug. 19 (Aug. 9 + 10 days)

Accepted Answer

The answer of 
Aug. 19 (Aug. 9 + 10 days)...

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

The single equivalent discount rate is found by taking the net price equivalent rate and adding it to 1.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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:

Accepted Answer

A)  $122,709.60 
B)  $26,970.40 
C)  $26,790.40 
D)  $122,907.69 
E)  None of these

Question 13

FOB shipping point means:

Accepted Answer

A)  Seller pays the cost of freight 
B)  Buyer pays the cost of freight 
C)  Title to goods shifts to buyer while being shipped 
D)  Seller cannot pay cost of freight 
E)  None of these

Question 14

4/10, n/30, ROG means a 4% discount can be taken within 10 days before the receipt of goods.

Accepted Answer

A) True 
 B)False

Question 15

The net price equivalent rate helps one calculate the actual cost to the seller.

Accepted Answer

A) True 
 B)False

Question 16

Jones Manufacturing sent Blue Company an invoice for equipment with a list price of $10,000. The invoice is dated July 27 with terms of 2/10, EOM. Blue Company is entitled to a 40% trade discount. If the invoice is paid on September 8, how much does Blue pay?

Accepted Answer

The answer of Jones Manufacturing sent Blue Company an invoice...

Question 17

The complement of 35% is:

Accepted Answer

A)  53% 
B)  65% 
C)  56% 
D)  165% 
E)  None of these

Question 18

A single equivalent discount rate of .45975 means the buyer saves approximately 46 cents per $1 of list price.

Accepted Answer

A) True 
 B)False

Question 19

Jones of San Diego sold Long of Baton Rouge a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB San Diego. Jones agreed to prepay the $35 freight. Assuming Long pays the invoice within the discount period, what does Long pay Jones?

Accepted Answer

The answer of Jones of San Diego sold Long of...

Question 20

A cash discount is a reduction from the gross amount of the invoice if payment is made within the discount period.

Accepted Answer

A) True 
 B)False

Exam 11: Discounts: Trade and Cash

2/10, n/30 is an example of the ordinary dating method.

Net price plus amount of trade discount equals list price.

Gross invoice (includes freight): $500 Freight: $100 Date of invoice: 9/10 Terms: 3/10, 1/15, n/30 Date of payment: 9/22 A) Discount: _ B) Net price: _

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:

Calculate (A) amount to be credited and (B) balance outstanding: Invoice: $3,000; Terms 2/10, n/30 Invoice date: July 5 Payment amount $600 Date paid: July 14 A. B.

Aug. 19 (Aug. 9 + 10 days)

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

The single equivalent discount rate is found by taking the net price equivalent rate and adding it to 1.

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

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:

FOB shipping point means:

4/10, n/30, ROG means a 4% discount can be taken within 10 days before the receipt of goods.

The net price equivalent rate helps one calculate the actual cost to the seller.

Jones Manufacturing sent Blue Company an invoice for equipment with a list price of $10,000. The invoice is dated July 27 with terms of 2/10, EOM. Blue Company is entitled to a 40% trade discount. If the invoice is paid on September 8, how much does Blue pay?

The complement of 35% is:

A single equivalent discount rate of .45975 means the buyer saves approximately 46 cents per $1 of list price.

Jones of San Diego sold Long of Baton Rouge a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB San Diego. Jones agreed to prepay the $35 freight. Assuming Long pays the invoice within the discount period, what does Long pay Jones?

A cash discount is a reduction from the gross amount of the invoice if payment is made within the discount period.

Exam 11: Discounts: Trade and Cash

2/10, n/30 is an example of the ordinary dating method.

Net price plus amount of trade discount equals list price.

Gross invoice (includes freight): $500 Freight: $100 Date of invoice: 9/10 Terms: 3/10, 1/15, n/30 Date of payment: 9/22 A) Discount: _______ B) Net price: _______

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:

Calculate (A) amount to be credited and (B) balance outstanding: Invoice: $3,000; Terms 2/10, n/30 Invoice date: July 5 Payment amount $600 Date paid: July 14 A. ____________ B. ____________

Aug. 19 (Aug. 9 + 10 days)

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

The single equivalent discount rate is found by taking the net price equivalent rate and adding it to 1.

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

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:

FOB shipping point means:

4/10, n/30, ROG means a 4% discount can be taken within 10 days before the receipt of goods.

The net price equivalent rate helps one calculate the actual cost to the seller.

Jones Manufacturing sent Blue Company an invoice for equipment with a list price of $10,000. The invoice is dated July 27 with terms of 2/10, EOM. Blue Company is entitled to a 40% trade discount. If the invoice is paid on September 8, how much does Blue pay?

The complement of 35% is:

A single equivalent discount rate of .45975 means the buyer saves approximately 46 cents per $1 of list price.

Jones of San Diego sold Long of Baton Rouge a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB San Diego. Jones agreed to prepay the $35 freight. Assuming Long pays the invoice within the discount period, what does Long pay Jones?

A cash discount is a reduction from the gross amount of the invoice if payment is made within the discount period.

Gross invoice (includes freight): $500 Freight: $100 Date of invoice: 9/10 Terms: 3/10, 1/15, n/30 Date of payment: 9/22 A) Discount: _ B) Net price: _

Calculate (A) amount to be credited and (B) balance outstanding: Invoice: $3,000; Terms 2/10, n/30 Invoice date: July 5 Payment amount $600 Date paid: July 14 A. B.