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

Exercise 44

Solve for the amount of discount and the total amount due on the following invoices. Add shipping and insurance charges if given. (See Examples.)
Finding the Amount Due on the Invoice
An invoice received by Bed Bath Beyond for $840 is dated July 1 and offers terms of 2/10, n/30. If the invoice is paid on July 8 and the shipping and insurance charges, which were FOB shipping point, are $35.60, find the total amount due.
CASE IN POINT
SOLUTION
Since the invoice was paid in 7 days (8 ? 1=7), which is less than the 10-day requirement identified by 2/10, the 2% cash discount applies.

However, the shipping and insurance charges must be added to the amount due.

The total amount due is $858.80.
Determining Cash Discount Due Dates for a Sliding Scale
An invoice from Cellular Products is dated May 18 and offers terms of 4/10, 3/25, 1/40, n/60. Find (a) the three final dates for each cash discount and (b) the net payment date.
SOLUTION
(a) The three final cash discount dates are

(b) The net payment date is July 17 (20 days beyond the cash discount period).