Up to 5% points will be deducted if all relevant calculations are not shown for questions 3,
Question:
Up to 5% points will be deducted if all relevant calculations are not shown for questions 3, 4 and 5
- A chain discount of 10/7/4 results in a net price equivalent rate of ___________.
- Complete the following:
Invoice Date goods Last day End of
Date Received Terms of discount credit period.
a.) Dec 25 1/10,n30
b.) April 18 2/10, n30 EOM
c.) July 9 Nov. 29 3/10,n/30 ROG
d.) April 28 2/10, n30 EOM
3.) What is the cash discount for each item in number 2 if:
Invoice equals Payment Date Discount
- $1,500 Jan 2
- $1,010 May 8
- $300 November 14
- $525 June 8
4) A Goodyear Tire Shop received an invoice showing 5 tires at $55 each, 6 tires at $65 each, and 20 tires at $80 each. Shipping terms are FOB shipping point. Freight is $175. Trade discount is 10/5 and a cash discount of 3/10, N/30 is offered. Assuming Goodyear pays within the discount period, what did Goodyear pay?
5) Majestic Manufacturing sold Jordan Furniture a living room set for $8,500 list price with 35% trade discount. The $100 freight (FOB shipping point) was not part of the list price. Terms were 3/10, n/30 ROG. The invoice date was May 30. Jordan received the goods on July 18 and paid the invoice on July 20. What was the total amount paid by Jordan Furniture?
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill