Question

11

Complete the following by calculating the cash discount and net amount paid: Gross amount of invoice (freight charge already included) Freight charge Date of invoice Terms of invoice Date of payment Cash discount Net amount paid 700 None 1814 8/14 4/10, 3/15 n/30 4/10, 315, 11308/26 8/26

Answer 1

ANSWER:

Given data

Gross amount of invoice=$700

Data of invoice=8/14

Term of invoice=4/10, 3/15, n/30

Date of payment=8/26

Term of Invoice 4/10, 3/15, n/30 methods:

4% money markdown if installment made inside 10 days of receipt

3% money markdown if installment made inside 15 days of receipt

Full installment inside 30 days.

In given case,

Receipt Amount = $700

Receipt date = 8/14

Installment date = 8/26

Installment is made in 12 days, in this manner 3% money markdown apply.

Money Discount Amount = 700*3% = $21

what's more,

Net Amount Paid = 700-21 = $679