1.) Great Buys bought a computer from a wholesaler with a $1,200 list price and a 28% trade discount. What is the trade discount amount? What is the net price of the computer?

2.) Harris of Washington sold Short of Idaho a video system with a $6,000 list price. Sale terms were 2/10, n/30 FOB Washington. Jones agreed to prepay the $35 freight. Assuming Short pays the invoice within the discount period, what does Short pay Harris?

3.) Morgan Shirt Company wants to buy new equipment to increase production capacity. Manufacturer X offers an 18/13 chain discount. Manufacturer Y offers a 22/10 chain discount. Both manufacturers have the same list price. Which manufacturer should Morgan buy from?

4.) Johnson Inc. received from Thomas CO. an invoice dated September 27. Terms were 2/10 EOM. List price on the invoice was $5,000 (freight not included). Johnson receives a 9/7 chain discount. Freight charges are Johnson's responsibility but Thomas agreed to prepay the $150 freight charge. Johnson pays the invoice November 9. What does Johnson pay Thomas after all of the discounts are accounted for? (Hint: take trade discount first)

Answer rating: 100% (QA)

1 The trade discount amount is 336 The net price of ... View the full answer