Question

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 paid after June 4th.

6.

A) A school received an invoice in the amount of $700 dated April 2nd. The sales terms are 2/10 EOM. The invoice was paid on May 1st. What is the net amount paid?

B) A department store received an invoice for goods in the amount of $1,200 on November 14th with sales terms 1/10 ROG. The goods arrived on November 16th.
The invoice was paid on November 17th. What is the net amount paid?

7. A department store received an invoice in the amount of $950 for clothes racks. The sales terms were 2/10, net 30. The entire invoice could not
be paid within the 10 day parameter but a partial payment of $150 was sent instead before the 10 day requirement.

A) What amount was credited to the account? (round to the nearest cents)

B) What was the outstanding balance? (round to the nearest cents)

8. A department store places a $2,000 order of clothing hangers from a manufacturer with sales terms of 3/10, 2/15, n/30. The cost of the shipping is $100 and is included in the $2,000.
The invoice was dated September 28th, marked freight prepay and add, and was paid on October 12th. Calculate the cash discount and the net amount paid by the department store.

Please provide steps

NO COPYING FROM OTHER CHEGG ANWERS, SOLUTIONS OR OTHER SOURCE NO COPYING FROM WIKIPEDIA. NO SCREEN SHOTS OR IMAGES OF RESPONSE. PLEASE TYPE YOUR ANSWER OR UPLOAD DOCUMENT

IF REQUIREMENTS MENTIONED ABOVE ARE NOT MET I WILL GIVE A NEGATIVE RATING

Answer 1

Solution 5:

A. If inovice is paid on or before 15th may then 3% discount will be available as payment is made with in 10 days.

Hence cash discount = $5,000*3% = $150

Net amount to be paid = $5,000 - $150 = $4,850

B. If inovice is paid between 16th may to 20th May then 2% discount will be available as payment is made after 10 days but with in 15 days.

Hence cash discount = $5,000*2% = $100

Net amount to be paid = $5,000 - $100 = $4,900

C. If inovice is paid between 21st may to 4th June then discount will not be available as payment is made after 15 days but with in 30 days

Hence cash discount = $5,000*0% = $0

Net amount to be paid = $5,000 - $0 = $5,000

D. If inovice is paid after 4th June then discount will not be available as payment is made after 30 days but 6% late fee will be charged

Hence cash discount = $5,000*0% = $0

Late Fee = $5,000 * 6% = $300

Net amount to be paid = $5,000 + $300 = $5,300