Questlon 6 (of 15) value: 1.00 polnts Majestic Manufacturing sold Jordans Furnit

Question

Questlon 6 (of 15) value: 1.00 polnts Majestic Manufacturing sold Jordans Furniture a living room set for an $8,520 list price with 25% trade discount. The $110 freight (FOB shipping point) was not part of the list price. Terms were 2/10, n/30 ROG. The invoice date was June 01. Jordans received the goods on July 20 and paid the invoice on July 22 What was the final price (include cost of freight) of the living room set? (Round your answer to the cent.) Final price References eBook & Resources Learning Objective 11-01 (1) Calculate single trade discounts with formulas and complements Worksheet Learning Objective 11-01 (2) Explain the freight terms FOB shipping point and FOB Difficulty: Intermediate

Explanation / Answer

Please find the answer ask if any doubts

Given Data:

List Price=$8520

Trade Discount=25%

=$8520*25/100

=$2130

so actual cost=8250-2130

=$6120

since goods were received on 20 july and were paid on 22 july

so elapsed time from received day to making payment

22 - 20 =2 days => payment in 2 days
2/10 or 2% discount for paying before 10 days i.e. 2 days
=$6120 * 2/100 = $122.4
so price before delivery=$6120 – $122.4 = $5997.6(without including freight)
delivered price including freight=$5997.6+$110

final price =$6107.6 (answer)

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