Question 1

Calculate the list price based on the information given below.
 $$\begin{array} {| l | l | l | l | } 
\hline\text { Ihem } & \text { List Price } & \text { Single Trade Discount } & \text { Net Price } \
\hline \text { Camera } & \text { ? } & 40 \% & \$ 699\
\hline
\end{array}$$

Accepted Answer

Divide $699 by 60%.

Question 2

Morgan Company received from Lee Company an invoice dated September 27. Terms were 2/10 EOM. List price on the invoice was $5,000 (freight not included). Morgan receives a 9/7 chain discount. Freight charges are Morgan's responsibility, but Lee agreed to prepay the $150 freight charge. Morgan pays the invoice on November 9. What does Morgan pay Lee?

Accepted Answer

$4,296.87

Question 3

Trade discounts sometimes are taken on freight.

Accepted Answer

A) True 
 B)False  False

Question 4

Al's Supply sold a chain saw to Mark's Lumber. The list price was $1,250. Al's Supply offered a chain discount of 6/3/1. What was the net price of the chain saw?

Accepted Answer

Multiply the complements of the chain di

Question 5

Calculate the net price based on the information given below.
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Ihem } & \text { List Price } & \text { Single Trade Discount } & \text { Net Price } \
\hline \text { Dell Laptop } & \$ 1,200 & 30 \% & \text { ? } \
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the net price based on the...

Question 6

200 days from March 3 is:

Accepted Answer

A) September 18 
B) September 17 
C) September 19 
D) September 20 
E) None of these 
A) September 18 
B) September 17 
C) September 19 
D) September 20 
E) None of these

Question 7

Feb. 15 is 71 days from Nov. 29.

Accepted Answer

A) True 
 B)False

Question 8

Goods sold after the 25th of the month with terms of 2/10, EOM results in the discount period being extended 10 days longer.

Accepted Answer

A) True 
 B)False

Question 9

Which option yields the highest single equivalent discount?
 $$\begin{array} { | l | l | } 
\hline \text { Option A } & \text { Option B } \
\hline 6 / 8 / 12 & 7 / 9 / 10 \
\hline
\end{array}$$

Accepted Answer

The answer of Which option yields the highest single equivalent...

Question 10

A bedroom set lists for $12,000 and carries a trade discount of 30%. Freight (FOB shipping point)of $150 is not part of list price. Calculate the delivered price of the bedroom set including the freight. Assume a cash discount of 2%.

Accepted Answer

A) $8,232 
B) $8,382 
C) $8,385 
D) $8,832 
E) None of these 
A) $8,232 
B) $8,382 
C) $8,385 
D) $8,832 
E) None of these

Question 11

Amount of trade discount equals:

Accepted Answer

A) List price × trade discount rate 
B) List price + trade discount rate 
C) List price divided by trade discount rate 
D) Net price × trade discount rate 
E) None of these 
A) List price × trade discount rate 
B) List price + trade discount rate 
C) List price divided by trade discount rate 
D) Net price × trade discount rate 
E) None of these

Question 12

Complete the following:
 $$\begin{array} { | l | l | l | l | } 
\hline \text { Item } & \text { List Price } & \text { Trade Discount } & \text { Net Price } \
\hline \text { Smartphone } & ? & 40 \% & \$ 600 \
\hline
\end{array}$$

Accepted Answer

The answer of Complete the following:
 \[\begin{array} { | l...

Question 13

The Blue Manufacturer sells radios to Bob's Discount Outlet. Radios carry a trade discount of 45%. If the price of a radio is $90, what does Bob pay?

Accepted Answer

Multiply the list price of $90

Question 14

Match the following terms with their definitions.
-Amount of trade discount

Accepted Answer

A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price 
A) Criteria on invoice 
B) Seller pays cost of freight 
C) Could be calculated by table look-up 
D) Savings from early payment 
E) Cash discount within first 10 days in next month after sale
F)Amount of time to take advantage of a cash discount
G)Discount period begins when goods are received
H)100% less stated percent
I)List price minus amount of trade discount
J)Time period sellers give buyers to pay invoices
K)1 - net price equivalent rate
L)Buyer pays cost of freight
M)Actual cost to buyer per dollar
N)2/10, n/30
O)Two or more trade discounts
P)List price minus net price
Q)Suggested retail price

Question 15

A net price equivalent rate of 0.74225 means that for each $10 the buyer's cost will be approximately 74 cents.

Accepted Answer

A) True 
 B)False

Question 16

Calculate the net price based on the information given below.
 $$\begin{array} { | l | l | l | l | } 
\hline\text { Item } & \text { List Price } & \text { Chain Discount } & \text { Net Price } \
\hline \text { Sofa } & \$ 1250 & 10 / 5 / 5 / 4 & ?\
\hline
\end{array}$$

Accepted Answer

The answer of Calculate the net price based on the...

Question 17

Complete:
 $\begin{array}{|l|l|l|l|l|l|l|} 
\hline& & \text { Chain } & \begin{array}{l}
\text { Net Price } \
\text { Equivalent }
\end{array} & \begin{array}{l}
\text { Single } \
\text { Equivalent }
\end{array} & \text { Amount of Trade } & \
\text { Item } & \text { List Price } & \text { Discount } & \text { Rate } & \text { Discount Rate } & \text { Discount } & \text { Net Price } \
\hline \text { Rug } & \$ 1,400 & 18 / 12 & \text { (A) } & \text { (B) } & \text { (C) } & \text { (D) }\
\hline
\end{array}$

Accepted Answer

A. 7216
B.

Question 18

Ed's Print Shop received an invoice dated May 10 for $2,500 with terms 3/10, 1/15, n/60. On May 22, Ed's Print Shop sent a partial payment of $2,000. What is the actual amount that should be credited, and what is Ed's Print Shop's outstanding balance?

Accepted Answer

Divide the partial payment of $2,000 by

Question 19

The portion could represent the amount of trade discount in the portion formula.

Accepted Answer

A) True 
 B)False

Question 20

Jones Company received an invoice for $1,450 dated August 28, terms 2/10 EOM.
(A)What is the last date of the discount and credit periods?
(B)If paid on October 3, how much would Jones pay?

Accepted Answer

2/10 EOM means the discount en

Exam 7: Discounts: Trade and Cash

Calculate the list price based on the information given below. Ihem List Price Single Trade Discount Net Price Camera ? 40\% \ 699

Trade discounts sometimes are taken on freight.

Al's Supply sold a chain saw to Mark's Lumber. The list price was $1,250. Al's Supply offered a chain discount of 6/3/1. What was the net price of the chain saw?

Calculate the net price based on the information given below. Ihem List Price Single Trade Discount Net Price Dell Laptop \ 1,200 30\% ?

200 days from March 3 is:

Feb. 15 is 71 days from Nov. 29.

Goods sold after the 25th of the month with terms of 2/10, EOM results in the discount period being extended 10 days longer.

Which option yields the highest single equivalent discount? Option A Option B 6/8/12 7/9/10

A bedroom set lists for $12,000 and carries a trade discount of 30%. Freight (FOB shipping point)of $150 is not part of list price. Calculate the delivered price of the bedroom set including the freight. Assume a cash discount of 2%.

Amount of trade discount equals:

Complete the following: Item List Price Trade Discount Net Price Smartphone ? 40\% \ 600

The Blue Manufacturer sells radios to Bob's Discount Outlet. Radios carry a trade discount of 45%. If the price of a radio is $90, what does Bob pay?

Match the following terms with their definitions. -Amount of trade discount

A net price equivalent rate of 0.74225 means that for each $10 the buyer's cost will be approximately 74 cents.

Calculate the net price based on the information given below. Item List Price Chain Discount Net Price Sofa \ 1250 10/5/5/4 ?

Complete: Chain Net Price Equivalent Single Equivalent Amount of Trade Item List Price Discount Rate Discount Rate Discount Net Price Rug \ 1,400 18/12 (A) (B) (C) (D)

Ed's Print Shop received an invoice dated May 10 for $2,500 with terms 3/10, 1/15, n/60. On May 22, Ed's Print Shop sent a partial payment of $2,000. What is the actual amount that should be credited, and what is Ed's Print Shop's outstanding balance?

The portion could represent the amount of trade discount in the portion formula.

Jones Company received an invoice for $1,450 dated August 28, terms 2/10 EOM. (A)What is the last date of the discount and credit periods? (B)If paid on October 3, how much would Jones pay?

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Goods sold after the 25^th of the month with terms of 2/10, EOM results in the discount period being extended 10 days longer.