Answer all questions.

Up to 5% points will be deducted if all relevant calculations are not shown for questions 3, 4 and 5

1. A chain discount of 10/7/4 results in a net price equivalent rate of ___________.

1. 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. $1,500 Jan 2
2. $1,010 May 8
3. $300 November 14
4. $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?