Question

Figure the total balance owed for each of the following (round to the nearest hundredth):

1) Retailer purchase items from whole seller with the following terms;

• shovels@ 12/ea; purchased 12 shovels on June 20 "10/10 net 30"
• brooms @8/ea ; purchased 50 brooms on June 30 "15/5 net 30"
• boxes of nails @ 50/each;purchased 20 boxes July 1 "2/10 net 30"
• **days of Holiday included towards total days counted
• Purchaser will pay bill "in full" today. How much does she owe?

2) Assume an additional 1 and 1/2% is deducted on any sale made on item sold "out of season". The sale of shovels is "out of season".

What would the total bill equal as of today?

Answer 1

10/10 net 30 means the seller will give discount of 10% if paid within 10 days net credit period 30 days

Todays date : 8th July 2020

1. if all the bills paid in full today

Shovels has 10/10 net 30 and was purchased on june 20th , so we will give additional 10% discount if we pay the amount by June 30th ,, but in the given case we paid the amount on 8th july 2020 which is not within 10 days so no additional discount.

Amount to be paid for shovels = 12 units * 12 per each = 144

similarly, brooms has 15/5 net 30 which means if we pay within 5 days then additional discount of 15%, in the given case we have paid after 5 days ie on 8th july 2020,

so Amount to be paid for brooms = 50 brooms * 8 per each = 400

boxes ,2/10 net 30, ie if we pay within 10days we get a discount of 2% , in the given case we have paid in 8 days ie 8th july 2020 so we will avail 2% discount as follows:

boxes = 20 boxes * 50 each = 1000

less: 2% discount (1000*2%) = 20

amount to be paid for boxes = 980

total amount to be paid on 8th july = 144+400+980 = 1524

2. out of season sale discount on shovels @ 1.5% = 144*1.5% = 2.16

amount to be paid on shovels = 144-2.16 = 141.84

total amount to be paid = 141.84+400+980 = 1521.84