Selma pays an invoice for an office supply order at the DMV on December 17. The
ID: 2383476 • Letter: S
Question
Selma pays an invoice for an office supply order at the DMV on December 17. The net price on the order is $372.55. and the terms are 3/10, net 30. The date of the invoice is December 10. Patty pays an invoice for producing a safe driving video at the DMV on December 17. The net price on the order is $545.00. and the terms are 3/10. net 30. The date of the invoice is December 3. Find the total cash price Selma and Patty paid. Abraham is elected treasurer of his retirement community^'s social group. He receives an invoice for an order of new jigsaw puzzles with a net price of $212.75 and an invoice date of January 15. The terms of the invoice are 4/5 EOM. Abraham also receives an invoice for snacks and fruit punch with a net price of $58.93 and an invoice date of January 29. The terms of this invoice are 2/5 EOM, and since it is dated so near the end of the month, an extension is granted. Abraham makes both payments on February 7. What is the total cash price he pays?Explanation / Answer
11.
Salma pays the invoice in 7 days (less than 10 days), so she will get the discount of 3% as per the terms 3/10 net 30.
Total amount to pay=372.55
Discount=3% of 372.5 =0.03*372.55=11.1765
Total amount Salma will pay =372.55-11.1765 =$361.3735
Patty pays the invoice 13 days later than the invoice date. So she will not get any discount as per terms 3/10 net 30.
Thus total amount she will pay=total invoice amount=$545
12.
4/5 EOM = 4% discount if paid in 5 day following end of the month
January 15 invoice date=212.75 with 4/5 EOM
January 29 invoice date =58.93 with 2/5 EOM
Since Abraham pays both on 7 February that is 7 days following end of the month he will be not eligible for any discount.
Thus he has to pay entire invoice amount =212.75+58.93=271.68
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