Question: An invoice for accessories is dated December 27 and is paid on January 10. The trade discount is 30%, 20%, and 5% with terms of
- An invoice for accessories is dated December 27 and is paid on January 10. The trade discount is 30%, 20%, and 5% with terms of 2/10 as of April 1, FOB retailer’s distribution center, and shipping charges of $30 prepaid by the vendor. There is a quantity discount of 1% on orders of $5000, and a 2% discount on orders of $7500 or more.
- What amount should be paid if the buyer purchased $10,000 (list price) worth of merchandise?
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Calculation of the trade discounts The first trade discount is 30 so the list price of 10000 is redu... View full answer
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