1, Given the following, determine the end of the A) Discount Period, and B) the

Question

1, Given the following, determine the end of the A) Discount Period, and B) the Credit Period:

Invoice Date: October 7

Terms: 2/10, n/30

2, Given the following, determine the end of the A) Discount Period, and B) the Credit Period:

Invoice Date: August 12

Terms: 3/10, n/30, ROG

Goods received on November 20

3, Given the following, determine the end of the A) Discount Period, and B) the Credit Period:

Invoice Date: November 17

Terms: 2/10, EOM

4, An invoice for office furniture for $1,735.92, with terms of 2/10, n/60, is dated October 8. Determine:

A) The last day of the Discount Period.

B) If paid within the Discount Period, how much is the cash discount?

C) If the Discount Period is missed, on what date does the Credit Period end?

5, Betty Rich wants to buy a new line of stereos for her shop. Manufacturer A offers a Chain Discount of 15/12/3, while Manufacturer B offers a chain of 16/9/5. Assuming both manufacturers have the same list price, from which manufacturer should Betty buy?

Explanation / Answer

1.(a)end of discount period is on october 17

(b)end of credit period is on oct 7 280+30=310,which is on nov 6

2.

3.(a)The discount ends after first 10 days of the month that follows the sale.hence the answer is

the end of discount period is on 10 december

(b)the credit period ends 20 days after discount period hence end of credit period is on 30 december.

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