Bed Bath and Beyond is a very large company that sells products for the home. One way they maximize their profits is to negotiate trade discounts from wholesalers. Another strategy is to pay invoices early enough to take advantage of cash discounts. The company is able to negotiate favorable terms because they guarantee large orders.

In early September, the Purchasing Manager, Lois Bidder, placed an order with one vendor for products having a combined list price of $27,393. The invoice arrived electronically the next day. It was dated September 4, had terms of 3/15 EOM, and showed a shipping charge of $748.38. SHOW ALL WORK!

1. Find the total amount of the invoice, excluding shipping. ______________________

2. What is the final discount date? ______________________

3. What is the net payment date? ______________________

4. Find the amount necessary to pay the invoice on October 11, ______________________

including the shipping.