Question 1

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

Accepted Answer

The answer of Calculate the Last Day of Discount Period...

Question 2

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?

Accepted Answer

The answer of Ashley Furniture received an invoice for $4,850,...

Question 3

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.

Accepted Answer

The answer of Jones Advertising Agency received a $3,000 invoice...

Question 4

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?

Accepted Answer

The answer of An invoice for office furniture for $1,210.88...

Question 5

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.)

Accepted Answer

The answer of Marvin Gate bought some fencing from a...

Question 6

Calculate the Last Day of Discount Period and End of Credit Period based on the information given below.
 $$\begin{array} { | l | l | l | l | l | } 
\hline\text { Date of } & \text { Date Goods } & & \text { Last Day of } & \text { End of Credit } \
 \text { Invoice } & \text { Received } & \text { Terms } & \text { Discount Period } & \text { Period } \
\hline \text { Oct 7 } & & 2 / 10 , n / 30 & \text { (A) } & \text { (B) } \
\hline \text { June 12 } & & 2 / 10 , \text { EOM } & \text { (C) } & \text { (D) } \
\hline \text { July 29 } & & 2 / 10 , \text { EOM } & \text { (E) } & \text { (F) } \
\hline \text { March 8 } & \text { July 2 } & 2 / 10 , n / 30 , \text { ROG } & \text { (G) } & \text { (H) } \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the Last Day of Discount Period...

Question 7

Match the following terms with their definitions.
-ROG

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

Question 8

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:

Accepted Answer

A) $3,537.12 
B) $3,537.21 
C) $3,391.12 
D) $3,357.21 
E) None of these

Question 9

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: ________

Accepted Answer

The answer of Invoice: $600
Terms: 2/10, 1/20, n/30
Invoice date: May...

Question 10

Sellers' catalogs list only the net price.

Accepted Answer

A) True 
 B)False

Question 11

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: ________

Accepted Answer

The answer of Invoice: $1,000
Terms: 3/10, n/30
Invoice date: May 5
Payment...

Question 12

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:

Accepted Answer

A) $765.31 
B) $765.30 
C) $757.58 
D) $757.59 
E) None of these

Question 13

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 14

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

Accepted Answer

A) True 
 B)False

Question 15

60 days from Nov. 19 is:

Accepted Answer

A) Jan. 16 
B) Jan. 17 
C) Jan. 18 
D) Jan. 19 
E) None of these

Question 16

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

Accepted Answer

A) True 
 B)False

Question 17

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)

Accepted Answer

The answer of Gross invoice (includes freight): $1,000
Freight: $100
Date of...

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Match the following terms with their definitions.
-Discount period

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

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 7: Discounts: Trade and Cash

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.)

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.

Exam 7: Discounts: Trade and Cash

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.)

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.

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:

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: