Question
1. An electronics retailer buys three color TV sets that list for $725 each and is billed with trade discounts of 20% and 10%. Terms
1. An electronics retailer buys three color TV sets that list for $725 each and is billed with trade discounts of 20% and 10%. Terms are 4/10, n/30. (pretend that all months have 30 days, for simplicity)
a. If the invoice is dated Nov.16 and paid on Nov. 26? What amount should be remitted? Answer: $1,503.36 to be remitted
2. Your department receives an invoice dated October 10 in the amount of $6,750. (pretend that all months have 30 days, for simplicity)How much must be paid on November 10 if terms are
a. 10/10 EOM. Answer: $6,075.00
3. Merchandise that amounts to $650 at cost is shipped and invoiced on August 29. Terms are 4/10 EOM. Payment is made on September 26. How much should be remitted? (pretend that all months have 30 days, for simplicity)Answer: $624.00
4. Goods are invoiced and shipped on July 1 and received on July 15. Terms are 5/10 EOM and the invoice is for $5,600. Payment is made on August 10. How much should be remitted? (pretend that all months have 30 days, for simplicity)Answer: $5,320.00 to be remitted
5. An invoice for $3,290, dated April 26th, covering merchandise received May19th, carries terms of 8/10 EOM, ROG. It is paid on June 10. (pretend that all months have 30 days, for simplicity)
(a.) How much should have been remitted? Answer: $3,026.80
6.Goods that are invoiced on July 26 are received on August 10. Indicate the final discount date for net payment and the final date for net payment if terms are: (pretend that all months have 30 days, for simplicity)
Answers:
Final Discount Date,Net Payment Date
(a.) 3/10 EOM=Sept. 10,Sept. 30
(b.) 2/10, net 30=Aug. 6,Aug. 26
(c.) 1/20-30X=Sept. 16,Oct. 6
(d.) 8/10 EOM as of Sept. 1=Oct. 10,Oct. 30
(e.) 8/10 EOM, ROG=Sept. 10,Sept. 30
I have all the answers provided, just looking for help on the work please! Thank you.
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