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Johnston Appliances received an invoice dated August 12 with terms 5 / 11, E.O.M. for...

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cooldude200 | eNotes Newbie

Posted November 5, 2013 at 4:27 PM via web

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Johnston Appliances received an invoice dated August 12 with terms 5 / 11, E.O.M. for the items listed below:

5 GE refrigerators at $1,210 each less 25%, 5%;

4 Inglis dishwashers at $690 each less 16 2/3%, 12.5%, 4%

Round your final answer properly to two decimal places.

a)  What is the last day for taking the cash discount? (Month - Date format)

 __________  ____________ 

b)  What is the amount due if the invoice is paid on the last day for taking the discount?

$  ____________ 

c)  What is the amount of the cash discount if a partial payment is made such that a balance of $2,400 remains outstanding on the invoice?

$  ____________ 

1 Answer | Add Yours

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llltkl | College Teacher | (Level 3) Valedictorian

Posted November 6, 2013 at 4:20 AM (Answer #2)

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Johnston Appliances received an invoice dated August 12 with terms 5 / 11, E.O.M. for the items listed below:

The invoice was for:

`(5*1210*0.75*0.95+4*690*0.83333*0.875*0.96)`

=$6242.62

The invoice dated Aug. 12 has terms 5/11 E.O.M.

a) Last day fortaking the cash discount is: 09-11

b) Net price if paid within the discount period:

=6242.62*0.95

=$5930.49

c) Let $x was paid within the discount period so that a balance of $2400 remains outstanding.

Then, 6242.62(1-x/5930.49)=2400

`rArr` x=(5930.49-2400*5930.49/6242.62)

=$3650.49

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