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1

$400 invoice dated July 5th : terms 2/10 n/30 no frieght paid on july 11. Calculate end of 2% discount period. C
payment on July 11th

End of disc.
Inv amt Invoice Paid
Period

$ 400.00 5-Jul 11-Jul 15-Jul

2
$600 invoice dated May 8th; $100 of freight included in invoice price; paid on May 22nd . Terms 2/10, 1/15 n/3
Calculate end of 1% discount period. Calculate end of credit period.

End of 2% End of 1% disc.


Inv amt Invoice Paid
disc. Period Period

$ 600.00 8-May 22-May 18-May 23-May

3
$900 invoice dated May 9th no freight or returned goods, the goods were received on July 8th terms 3/10, n/30
end of 3% discount period, Calculate end of the credit period. Calculate payment

Ans. In this case, the discount period begins when the goods are received

End of 3% disc.
Inv amt Invoice Paid
Credit period Period
start date
$ 900.00 9-May 8-Jul 20-Jul 18-Jul

4 HArdy company sent Regan Corporation an invoice for office equipment with a $10,000 list price. Invoice dated
regan receives 30% trade discount and the paid invoice on Sept. 6. Since terms were FOB destination. Regan pa
equipment for regan?

Here, the invoice dated 29 july has the terms 2/10 EOM which menas a 2% discount is ap
within 10 days after the end of this month. So in this case, end of 2% credit perio
End of 2% disc.
List Price Invoice Paid
Credit period Period
start date
$ 10,000.00 29-Jul 29-Jul 6-Sep 10-Aug

5 Lowell Bank:

Checkbook balance $ 1,009.76 Bank Balance


Add: Add:
Interest $ 1.10 Deposit
$ 1,010.86
Deduct: Deduct:
Teller fee $ 12.00 Check 413
Check 414
Check 418
Reconciliated balance $ 998.86

6 Couponcabin.com

Coupon discount 20%


Store-wide discount 10%
Credit card discount 10% these 3 result in a chain discou

Gift Purchased $ 155.00

Net price equivalent rate 64.8%


Single equivalent discount 35.2% 35.2%

Final Price paid $ 100.44

7 Net price
Item LP chain disc equivalent
rate

Apple ipad $ 599.00 3 / 1 96.03%


Panasonic $ 199.00 8 / 4 / 3 85.67%
IBM $ 269.00 7 / 3 / 1 89.31%
late end of 2% discount period. Calculate end of credit period. Calculate
July 11th

End of Credit Payment on 11


Period jul

4-Aug $ 392.00

May 22nd . Terms 2/10, 1/15 n/30. Calculate end of 2% discount period.
. Calculate end of credit period.

End of Credit Payment on 22


Period May

7-Jun $ 595.00

ved on July 8th terms 3/10, n/30 ROG payment made on Jul 20. Calculate
credit period. Calculate payment on July 20

End of Credit Payment on 22


Period May

7-Aug $ 900.00

$10,000 list price. Invoice dated July 29 with terms of 2/10 end of month.
were FOB destination. Regan paid no frieght charge. WHat was the cost of
r regan?

menas a 2% discount is applicable if the payment is made


ase, end of 2% credit period will be 10th of August
Trade discount

Invoice Price Payment


30% $ 7,000.00 $ 7,000.00

$ 305.33

$ 801.15
$ 1,106.48

$ 28.30
$ 18.60
$ 60.72
$ 998.86

e 3 result in a chain discount

Single
Trade
equivalent Net Price
Discount
discount

3.97% $ 23.78 $ 575.22


14.33% $ 28.52 $ 170.48
10.69% $ 28.76 $ 240.24