1. Handbags that you have purchased for your department are priced at$7.75 each. How much will 10 handbags cost you if:

You pay the invoice within the discount term dates ? AND, by what date must the invoice be paid to receive the discount if:

a.The invoice is dated August 9 and terms are listed as

2/10, net 30.

Cost of the 10 handbags:

Date to pay invoice by:

b.The invoice is dated August 9, the handbags are received August 12, and the terms are listed as 3/10, E.O.M., net 30

Cost of the 10 handbags:

Date to pay invoice by:

2. You have looked at comb and brush set for your notions department.

Two vendors have sets that are suitable. You decide to purchase 6

dozen from one the two vendors. Which one will it be?

Vendor AVendor B

Cost$12.75/dozen$10.75/dozen

Seasonal discount 10% none

Cash discount 3/10 net 30 2/10 net 30

Shipping terms75 cents/dozen75 cents/dozen

F.O.B. destination F.O.B. origin

3. A buyer receives an invoice for $500; assuming the buyer paid on

time, use the following terms and calculate:

(a)the last day on which the cash discount may be taken

(b) the amount to be remitted if the discount is taken

DateCash

InvoiceMerchandiseTermsDiscount$ AmountDateIs ReceivedDateDue

a. Feb. 6Feb. 113/10, net 30________________

b. Aug. 18Aug. 293/10 ROG________________

c. July 10July 158/10 EOM________________

d. Mar. 18Mar. 238/10 EOM________________

e. Dec. 3Dec. 71/10, net 30 ________________

f. Sept. 19Sept. 303/10 ROG________________

g. May 26May 313/10 net 30 ________________

i. Jan 18 Jan. 246/10 ROG________________

4. A sporting goods buyer purchased:

6 dozen baseball jerseys at $20 each

12.5 dozen baseball pants at $12.50 each

8 dozen baseball caps at $5 each

The invoice is dated May 14 and is paid on June 10. Terms and conditions of sale are 8/10 EOM, and there are FOB factory transportation charges of $83.76. How much should be remitted?

Show the math calculation per style, inclusive of the price plus the discount if applied,and the shipping as a separate entry. Then the total amount.

Jerseys:Total cost

Pants:Total cost

Caps:Total cost:

Total Invoice merchandise cost:

Freight for shipment:

Total amount pay to vendor: