Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 166

Solve for the amount of discount and the amount due on the following invoices. Round to the nearest cent. (See Examples.)
Using Proximo Dating
Find the amount due on an invoice of $782 for some Black and Decker Belgian waffle makers dated August 3, if terms are 1/10 prox. and the invoice is paid on September 4.
SOLUTION
The last date on which the discount may be taken is September 10 ( 10 days after the end of August). September 4 is within the discount period, so the discount is earned. The 1% cash discount is computed on $782, the amount of the invoice. Subtract the discount ($782 ×.01 = $ 7.822 from the invoice amount to find the amount due.

Working with ROG Dating
Find the amount due to Sir Speedy on an invoice of $285 for printing services, with terms of 3/10 ROG, if the invoice is dated June 8, the goods are received June 18, and the invoice is paid June 30.
SOLUTION
The last date to take the 3% cash discount is June 28, 10 days after June 18. Since the invoice is paid on June 30, 2 days after the last discount date, no cash discount may be taken. The entire amount of the invoice must be paid.

Understanding Extra Dating
An invoice from Wind Turbines Solar, Inc., is dated August 5, amounts to $8180, offers terms of 3/10-30 x, and is paid on September 12. Find the net payment.
SOLUTION
Step 1 The last day to take the 3% cash discount is September 14 ( August 5 + 40 days = September 14 ). Since the invoice is paid on September 12, the 3% discount may be taken. Step 2 The 3% cash discount is computed on $8180, the amount of the invoice. The discount to be taken is $245.40.
Step 3 Subtract the cash discount from the invoice amount to determine the amount of payment.