Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
- A chain discount of 15/3/2 results in a net price equivalent rate of _____.
- The single equivalent discount rate in No. 1 would be _____.
- A cellular phone had a list price of $250 with a chain discount of 8/6. Calculate the net price and trade discount amount.
- Complete the following:
Invoice | Date goods | Terms | Last day of | End of | Date | recieved | | discount period | credit period | a.July 8 | | 1/10,n/30 | ? | ? | b.March 8 | | 2/10 EOM | ? | ? | c.July 9 | Oct 4 | 3/10,n/30 ROG | ? | ? | d.March 26 | | 2/10 EOM | ? | ? |
- Given the following, calculate cash discount and amount paid:
Gross amount of invoice including freight, $900
Freight, $100
Invoice date, 9/6
Terms, 1/10 EOMM
Date of payment, 10/9 - Calculate the amount to be credited and balance outstanding from the following partial payment information:
Invoice amount, $950
Terms, 2/10, n/60
Invoice date, 9/20
Partial payment date, 9/27
Partial payment, $400
- A GoodYear Tire Shop received an invoice showing five tires at $40 each, nine tires at $70 each, and 20 tires at $90 each. Shipping terms are FOB shipping point. Freight is $200. Trade discount is 10/9 and a cash discount of 2/10, N/30 is offered. Assuming GoodYear pays within the discount period, what did GoodYear pay?
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