Exam 8: Invoices and Discounts

John Sweeney purchased car parts and is billed $1,620.58 plus freight charges of $85. The invoice is dated June 19 with payment terms of 2/15, n/ 45. How much should John pay if he pays on July 1?

What format is likely to be used for the numbers calculated in an an Excel spreadsheet for an invoice?

What is a trade discount?

A statement of account lists all of the month's ____________ including the balance on the account, payments made during the month, and any credits issued.

A retailer tracks list prices and discounts in an Excel spreadsheet so owners can analyze how different sales will affect the company's bottom line. One item in Cell B4 has a list price of $172.89. Varying rates for discount 1 and discount 2 can be entered into Cells B5 and B6. Which formula should be entered into Cell B7 to calculate the net-price equivalent?

An invoice amount for $4,090.72 has the terms 2/15, n/30. There are $135 in freight charges included in the invoice. $346.24 in merchandise is returned and the invoice is paid within the discount period. What is the net amount due?

The term 3/10 EOM means that a 3% discount will be applied if the payment is received within 10 days of the invoice date.

Kermit and Chris bought a vacation package for $3,999. There is a 4.75% sales tax added to the package. What is the total cost?

Mario's Wholesale Pastas sells pasta to restaurants. Mario buys from a company that offers a 40% trade discount. Mario sells to his retail customers at a 25% discount. One type of pasta lists for $17.80 for 20 pounds. What is Mario's profit on this item?

Cherie's Lawn and Garden received a shipment of live plants for a list price of $2,890. Cherie was given a series discount of 15/10. The terms of the invoice are 3/10, n/30. How much should Cherie pay if she pays within the discount period?

An invoice for P&L Manufacturing has the total list price in Cell E13. Write two ways that an 18% trade discount could be calculated in Cell E14.

Mr. Taylor purchased furniture for his office for a total of $1,109.46 including 6.25% in sales tax. How much was the furniture before the tax?

An invoice that totals $4,291.61 includes a $27 non-taxable shipping charge and 5.2% sales tax. The terms of the invoice are 3/15, n/45. If the invoice is paid within the discount period, how much should be paid?

Marianne spent $116.56 at the cosmetic counter in a department store. Included in the price is 5.5% sales tax. What is the selling price of the cosmetics she purchased?

Mr. and Mrs. Simon purchased patio furniture for $725.99 and a grill for $189.75. They are charged an additional 4.15% in sales tax and $55 in delivery fees. What is the total cost if the delivery charges are taxable?

Janine runs a small deli. She received a shipment of baked goods for a list price of $573.45. Janine was given a series discount of 10/15/5. The terms of the invoice are 2/10, n/30. How much should Janine pay if she pays within the discount period?

The ______________ of each discount in the series discount 10/15/20 is 0.9, 0.85, and 0.8.

Melissa's Fantastic Fabric Purses shipped 55 purses, 20 wallets, and 32 change purses to a customer. The price of each purse is $15.65, each wallet is $12.50, and each change purse is $7.89. The customer receives a 30% trade discount. The shipping type is FOB destination at a cost of $40. What is the invoice total?

Use the table to find the net price of an item that lists for $1,290 with a series discount of 20%, 10%, 10%.

The Radford Pet Store is purchasing four aquarium kits for $69.99 each, fifty 25-lb bags of aquarium gravel for $14.50 each, and twenty cases of fish food for $119.19 each. The pet store receives a trade discount of 30%. If there are freight charges of $89, what is the net price?