Exam 8: Invoices and Discounts

Greta purchases scarves for her clothing store and is billed $1,329.75, plus shipping charges of $56 with terms 3/10, n/30. The invoice is dated August 28. Greta makes a partial payment on September 3 for $925. How much does Greta still owe on the invoice?

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Question 1

Correct Answer:

Verified

$432.14;
100% 3% = 97%; $925 0.97 $953.61; $1,329.75 $953.61 + $56 = $432.14

An item lists for $314.79. A series discount of 10/8/5 is applied. What is the discount amount rounded to the nearest cent?

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Question 2

Correct Answer:

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$67.18;

ABC Imports purchased $2,319.00 in shipping containers which includes 3.95% in sales tax. The terms are 2/10, n/30 and a taxable shipping charge of $198 is included in the invoice. If the invoice is paid within the discount period, how much should be paid?

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Question 3

Correct Answer:

Verified

$2,276.73;
Net price before sales tax is $2,319 1.0395 $2,230.88. Subtract the shipping charges because there is no discount on shipping; $2,230.88 $198 = $2.032.88; Multiply by 2% for the discount; $2.032.88 0.02 $40.66; subtract: $2.032.88 $40.66 = $1,992.22.
Add in the shipping charges and multiply by 0.0395 for the sales tax. Add in the sales tax. $1,992.22 + $198 = $2,190.22; $2,190.22 0.0395 $86.51; $2,190.22 + $86.51 = $2,276.73

Match the following terms with their definitions.

COD

Contract between a shipper and a carrier that accompanies a shipment

FOB destination

An internal form that is sent to the purchasing department from another department that needs the supplies

receiving report

Form used to verify an order once it is received

Correct Answer:

Verified

COD

FOB destination

receiving report

purchase requisition

purchase order

FOB shipping point

bill of lading

invoice

(Matching)

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Question 4

What is the net amount due on an invoice where the invoice amount is $2,589 and the terms are 2/10, n/45? Assume the invoice is paid within the discount period.

(Multiple Choice)

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Question 5

There is an invoice with an invoice amount of $927.89. The terms are 3/10, n/30. There are $19.50 in shipping charges, and the invoice is paid within the discount period. What is the cash discount and the net amount due?

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Question 6

The _______________ is the price a customer pays after all discounts have been deducted.

(Short Answer)

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Question 7

When entering a formula in Excel, the formula must begin with a parenthesis to indicate to Excel that what is being entered is a calculation.

(True/False)

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Question 8

Michaela purchased a bicycle for $435.76 including 4.75% in sales tax. How much was the bicycle before the tax?

(Short Answer)

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Question 9

Jamal's Carburetors shipped 14 carburetor rebuild kits to a customer. The price of each kit is $48.29. The customer receives a 35% trade discount. The shipping type is FOB destination at a cost of $67.50. What is the invoice total?

(Multiple Choice)

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Question 10

Excel can be used to make templates for forms such as invoices.

(True/False)

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Question 11

Ronco's Hardware received an invoice for $10,429.38, dated September 17, with terms 3/10, 2/30, n/45. The hardware store pays the invoice on October 5. How much should be paid?

(Multiple Choice)

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Question 12

Use the table to find the net price of an item that lists for $480 with a series discount of 10%, 10%, 5%.

(Multiple Choice)

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Question 13

Use the complement method to find the single discount equivalent of the series discount 10/15/20.

(Essay)

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Question 14

What does the term 3/10, n/30 mean?

(Multiple Choice)

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Question 15

Use the complement method to find the net price of an item that lists for $213 with a series discount of 20/15/10.

(Short Answer)

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Question 16

Adya ordered books at a cost of $113. She is charged an additional 5.95% in sales tax and $12 in shipping costs. What is the total cost if the shipping charges are not taxable?

(Multiple Choice)

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Question 17

Katy purchased music CDs for the recreation center she manages. She is given an invoice for $259.25 which includes shipping charges of $19.95. The invoice date is February 5 with payment terms of 3/10 EOM. How much should Katy pay if she pays on March 2?

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Question 18

An invoice amount is $2,169.50 and the terms are 3/10 EOM. A partial payment of $750 is made within the discount period. What is the balance due on the invoice after the partial payment?

(Multiple Choice)

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Question 19

What is the net amount due on an invoice where the invoice amount is $572.39 and the terms are 3/15, n/30? Assume the invoice is paid within the discount period.

(Short Answer)

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Question 20

Greta purchases scarves for her clothing store and is billed $1,329.75, plus shipping charges of $56 with terms 3/10, n/30. The invoice is dated August 28. Greta makes a partial payment on September 3 for $925. How much does Greta still owe on the invoice?

An item lists for $314.79. A series discount of 10/8/5 is applied. What is the discount amount rounded to the nearest cent?

ABC Imports purchased $2,319.00 in shipping containers which includes 3.95% in sales tax. The terms are 2/10, n/30 and a taxable shipping charge of $198 is included in the invoice. If the invoice is paid within the discount period, how much should be paid?

What is the net amount due on an invoice where the invoice amount is $2,589 and the terms are 2/10, n/45? Assume the invoice is paid within the discount period.

There is an invoice with an invoice amount of $927.89. The terms are 3/10, n/30. There are $19.50 in shipping charges, and the invoice is paid within the discount period. What is the cash discount and the net amount due?

The _______________ is the price a customer pays after all discounts have been deducted.

When entering a formula in Excel, the formula must begin with a parenthesis to indicate to Excel that what is being entered is a calculation.

Michaela purchased a bicycle for $435.76 including 4.75% in sales tax. How much was the bicycle before the tax?

Jamal's Carburetors shipped 14 carburetor rebuild kits to a customer. The price of each kit is $48.29. The customer receives a 35% trade discount. The shipping type is FOB destination at a cost of $67.50. What is the invoice total?

Excel can be used to make templates for forms such as invoices.

Ronco's Hardware received an invoice for $10,429.38, dated September 17, with terms 3/10, 2/30, n/45. The hardware store pays the invoice on October 5. How much should be paid?

Use the table to find the net price of an item that lists for $480 with a series discount of 10%, 10%, 5%.

Use the complement method to find the single discount equivalent of the series discount 10/15/20.

What does the term 3/10, n/30 mean?

Use the complement method to find the net price of an item that lists for $213 with a series discount of 20/15/10.

Adya ordered books at a cost of $113. She is charged an additional 5.95% in sales tax and $12 in shipping costs. What is the total cost if the shipping charges are not taxable?

Katy purchased music CDs for the recreation center she manages. She is given an invoice for $259.25 which includes shipping charges of $19.95. The invoice date is February 5 with payment terms of 3/10 EOM. How much should Katy pay if she pays on March 2?

An invoice amount is $2,169.50 and the terms are 3/10 EOM. A partial payment of $750 is made within the discount period. What is the balance due on the invoice after the partial payment?

What is the net amount due on an invoice where the invoice amount is $572.39 and the terms are 3/15, n/30? Assume the invoice is paid within the discount period.

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