Question

In: Finance

32. a. An invoice for the amount of $7910.00 is dated 5/26 and received on 6/16....

32.

a.

An invoice for the amount of $7910.00 is dated 5/26 and received on 6/16. The terms are 8/10 EOM. Determine the discount amount, if any.

a.

$632.80

b.

$7291.75

c.

$651.72

d.

$0.00

e.

$7267.40

f.

None of the above.

b.

A buyer has established a markup on retail of 31.5% for a line of t-shirts. The buyer plans to price them at $14.00. Determine the price he will have to pay to maintain his plan.

a.

$9.59

b.

$12.69

c.

$11.95

d.

$8.34

e.

$7.54

f.

None of the above.

Solutions

Expert Solution

a.

8/10 EOM is a kind of payment term which states that the payment should be made within end of the month in order to earn a discount of 8% on the amount, in any case the payment should be made by 10th of the next month i.e 6/10. Hence, if the customer would have made the payment by 5/31, then the discount would be $7,910 - $632.8 (discount of 8%). Since the payment is made after end of the month and by delay of 6 days, there is no discount. The correct answer is d '$0.00'.

b.

The markup percentage can be calculated with the following formula:

Markup percentage = Selling price - cost / cost * 100

By putting all the above option at cost, we can find the cost,

31.5 % = $14 - 9.59 / 9.59 * 100

           = $4.41 / 9.59 * 100

   31.5% = 45.98%

After calculations we can find out that number on both the side is $4.41

Therefore, 31.5% of $14 is equals to 45.98% of $9.59

Hence, the correct answer is a. '$9.59'


Related Solutions

For the problems 1 -6 Consider the data set    16, 26, 31, 32, 32, 32,...
For the problems 1 -6 Consider the data set    16, 26, 31, 32, 32, 32, 42, 47, 47, 47, 50, 50 (already put in increasing order) Compute the following: 1/   The mode: A/ 47       B/ 32           C/ Bimodal       D/ 42   2/   The median: A/ 42       B/ 37           C/ 32           D/ 47   3/   The mean:        A/ 37.7       B/ 37           C/ 36           D/ 36.2 4/  ...
Hudson's Bay received an invoice dated July 13 from Nygard International in the amount of $206,731.75....
Hudson's Bay received an invoice dated July 13 from Nygard International in the amount of $206,731.75. The terms are 2/10, 1/20, n/30. If Nygard receives full payment on August 1, what amount is paid?
5. A department store received a $5,000 invoice for office supplies dated May 5th, with sales...
5. A department store received a $5,000 invoice for office supplies dated May 5th, with sales terms of 3/10, 2/15, and n30. A 6% late fee is applied to any invoice over 30 days. Find the cash discount and the net amount for the following: A) The invoice is paid on or before May 15th. B) The invoice is paid between May16th and May 20th. C) The invoice is paid between May 21st and June 4th. D) The invoice is...
5. A department store received a $5,000 invoice for office supplies dated May 5th, with sales...
5. A department store received a $5,000 invoice for office supplies dated May 5th, with sales terms of 3/10, 2/15, and n30. A 6% late fee is applied to any invoice over 30 days. Find the cash discount and the net amount for the following: A) The invoice is paid on or before May 15th. B) The invoice is paid between May16th and May 20th. C) The invoice is paid between May 21st and June 4th. D) The invoice is...
how does 2 = 26 *5 -32 * 4 becomes 26 * 5 + 32 *...
how does 2 = 26 *5 -32 * 4 becomes 26 * 5 + 32 * (-6) = 2
A company received an invoice for $1734.68 dated October 9 with terms 6/15, 2/30, n/60.   (a)...
A company received an invoice for $1734.68 dated October 9 with terms 6/15, 2/30, n/60.   (a) If the invoice is paid on October 20, how much is to be paid? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) If the invoice is paid on November 6, how much is to be paid? (Round the final answer to the nearest cent as needed. Round all intermediate values to...
A company received an invoice for $3904.85 dated June 14 with terms 6​/15​, 2​/30, ​n/60.   ​(a)...
A company received an invoice for $3904.85 dated June 14 with terms 6​/15​, 2​/30, ​n/60.   ​(a) If the invoice is paid on June 20​, how much is to be​ paid? ​(b) If the invoice is paid on July 11​, how much is to be​ paid? ​(c) If the invoice is paid on August 10​, how much is to be​ paid?
1. A company received an invoice for ​$3904.85 dated June 14 with terms 6​/15​, 2​/30, ​n/60.  ...
1. A company received an invoice for ​$3904.85 dated June 14 with terms 6​/15​, 2​/30, ​n/60.   ​(a) If the invoice is paid on June 20​, how much is to be​ paid? Round the final answer to the nearest cent as needed. ​(b) If the invoice is paid on July 11​, how much is to be​ paid? Round the final answer to the nearest cent as needed. ​(c) If the invoice is paid on August 10​, how much is to be​...
The Scientific Store received an invoice for $6710.00 dated July 13, terms 5/10, 2/30, n/90, for...
The Scientific Store received an invoice for $6710.00 dated July 13, terms 5/10, 2/30, n/90, for a shipment of skis. Calculate the partial payments made 20 July to reduce the balance to $4000.00 Round to nearest 100th. Written please.
A company issues 800,000 of 10% bonds dated 6/1/16 which are due 6/1/26. interest is paid...
A company issues 800,000 of 10% bonds dated 6/1/16 which are due 6/1/26. interest is paid annually at 6/1. the market rate for the bond is 9.75% on 5/1/19 the company retired all of these bonds for 802,000 plus accrued interest. prepare journal entries from 2016 to 2019
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT