Author Question: Describe how to find the invoice price of an item that is subject to a discount ... (Read 96 times)

ARLKQ

  • Hero Member
  • *****
  • Posts: 571
Describe how to find the invoice price of an item that is subject to a discount series.

Question 2

An invoice for 1,500 dated December 14 has terms of sale of 3/10, 2/20, n/30. What is the amount of the cash discount and cash price if the invoice is paid on December 28?



helenmarkerine

  • Sr. Member
  • ****
  • Posts: 324
Answer to Question 1

The first discount is calculated based on the list price of the item. Then the second discount is based on the remainder after deducting the first discount. The third discount is based on the remainder after deducting the second discount, and so on.

Answer to Question 2

30, 1,470



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Multiple sclerosis is a condition wherein the body's nervous system is weakened by an autoimmune reaction that attacks the myelin sheaths of neurons.

Did you know?

Adults are resistant to the bacterium that causes Botulism. These bacteria thrive in honey – therefore, honey should never be given to infants since their immune systems are not yet resistant.

Did you know?

The largest baby ever born weighed more than 23 pounds but died just 11 hours after his birth in 1879. The largest surviving baby was born in October 2009 in Sumatra, Indonesia, and weighed an astounding 19.2 pounds at birth.

Did you know?

To combat osteoporosis, changes in lifestyle and diet are recommended. At-risk patients should include 1,200 to 1,500 mg of calcium daily either via dietary means or with supplements.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

For a complete list of videos, visit our video library