Question 1

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?

Accepted Answer

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

Question 2

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?

Accepted Answer

$67.18;

Question 3

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?

Accepted Answer

$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

Question 4

Match between columns
                        Premises: COD
FOB destination
receiving report
purchase requisition
purchase order
FOB shipping point
bill of lading
invoice

Accepted Answer

The Answer of Contract between a shipper and a carrier is...

Question 5

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.

Accepted Answer

A)   $2,640.78
B)   $2,537.22
C)   $2,389.28
D)   $2,071.20

Question 6

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?

Accepted Answer

The answer of There is an invoice with an invoice...

Question 7

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

Accepted Answer

The answer of The _______________ is the price a customer...

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

The answer of Michaela purchased a bicycle for $435.76 including...

Question 10

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?

Accepted Answer

A)   $415.82
B)   $439.44
C)   $652.43
D)   $719.93

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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?

Accepted Answer

A)   $10,116.50
B)   $10,220.79
C)   $10,328.18
D)   $10,429.38

Question 13

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

Accepted Answer

A)   $346.28
B)   $369.36
C)   $235.80
D)   $110.64

Question 14

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

Accepted Answer

The answer of Use the complement method to find the...

Question 15

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

Accepted Answer

A)   10% discount if paid within 3 days, payment due 30 days from invoice date
B)   30% discount if paid within 10 days, payment due 30 days from invoice date
C)   Minimum payment of 3/10 of the balance due within 30 days from invoice date
D)   3% discount if paid within 10 days, payment due 30 days from invoice date

Question 16

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

Accepted Answer

The answer of Use the complement method to find the...

Question 17

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?

Accepted Answer

A)   $119.72
B)   $129.13
C)   $131.72
D)   $132.44

Question 18

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?

Accepted Answer

The answer of Katy purchased music CDs for the recreation...

Question 19

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?

Accepted Answer

A)   $1,396.30
B)   $1,419.50
C)   $1,491.50
D)   $1,496.30

Question 20

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.

Accepted Answer

The answer of What is the net amount due on...

Exam 8: Invoices and Discounts