maplewood supply received a $5,410 invoice dated 4/15/20. the $5,410 included $310 freight. terms were 2/10…
maplewood supply received a $5,410 invoice dated 4/15/20. the $5,410 included $310 freight. terms were 2/10, 1/30, n/60. (if more than one discount, assume date of last discount.) required: a. if maplewood pays the invoice on april 27, 2020 what will it pay? payable amount b. if maplewood pays the invoice on may 21, what will it pay? payable amount
Answer
Explanation:
Step1: Identify the net - invoice amount
The invoice amount is $5,410 and the freight is $310. So the net - invoice amount (excluding freight) is $5410 - 310=5100$.
Step2: Analyze the discount terms
The terms $\frac{2}{10},\frac{1}{30},\frac{n}{60}$ mean a 2% discount if paid within 10 days, a 1% discount if paid within 30 days, and the full amount if paid after 30 days.
Step3: Calculate the payment for part a
The invoice is dated 4/15/20 and paid on 4/27/20. The number of days from 4/15 to 4/27 is 12 days. Since 12 days is between 10 and 30 days, a 1% discount applies to the net - invoice amount. The discount on the net - invoice amount is $5100\times0.01 = 51$. The amount to be paid is the net - invoice amount minus the discount plus the freight. So, $5100-51 + 310=5359$.
Step4: Calculate the payment for part b
The invoice is paid on 5/21/20. The number of days from 4/15 to 5/21 is more than 30 days. So, no discount applies to the net - invoice amount. The amount to be paid is the net - invoice amount plus the freight, which is $5100+310 = 5410$.
Answer:
a. $5359 b. $5410