question archive 1) An invoice is dated April 9 with terms 3/15 EOM
1) An invoice is dated April 9 with terms 3/15 EOM
Subject:BusinessPrice:3.87 Bought7
1) An invoice is dated April 9 with terms 3/15 EOM. What is the discount date?
2) Find the net price for an order of tires with a list price of $13,000, less trade discounts of 30/25/10. Use the net price, complement method.
$2,964.00
$6,142.50
$6,857.50
$10,036.00
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Answers:
1)
Because the invoice date is between the 1st and 25th of a month, April 9, the discount date on terms of 3/15 EOM would be 15 days after the end of the month of the invoice.
So, discount date = 15 days after the end of April = May 15
2)
The net price is computed as shown below:
= List price x (1 - 0.30) x (1 - 0.25) x (1 - 0.10)
= $ 13,000 x 0.70 x 0.75 x 0.90
= $ 6,142.50
