The data below pertains to a particular purchase:

Date of invoice -------------- August 23

List price --------------------$2,500

Trade discount -------------- 40%

Prepaid freight -------------- $125

Terms -------------- 2/10, n/30 FOB Shipping Point

Required

a. When the invoice is received from the vendor, the purchaser should expect the total of the invoice to be what amount?

b. What is the last day on which the purchaser may make payment and still be entitled to the cash discount?

c. What is the amount of the cash discount that can be taken if the invoice is paid within the discount period?

Answer rating: 100% (QA)

Solution a Date of invoice August 23 the purchaser should expect the total of the invoice to ... View the full answer