os 44 pute the amount to be paid for each of the four separa

os 4-4 pute the amount to be paid for each of the four separate invoices assuming that all invoices are paid Comp Computing net invoice within the discount period amounts Terms 1/10, n/30 Merchandise (gross) P1 a. $5,000 b. $20,000 2/10, n/60 .$75,000 1/15, EOM d. $10,000 3/15, n/45

Solution

a) As 2/10 is given that means 2% discount if paid within 10 days Account to be reduced 5000 Less Discount (5000*2%) 100 Amount to be paid 4900 b) As 1/15 is given that means 1% discount if paid within 15 days Account to be reduced 20000 Less Discount (20000*1%) 200 Amount to be paid 19800 c) As 1/10 is given that means 1% discount if paid within 10 days Account to be reduced 75000 Less Discount (75000*1%) 750 Amount to be paid 74250 d) As 3/15 is given that means 3% discount if paid within 15 days Account to be reduced 10000 Less Discount (10000*3%) 300 Amount to be paid 9700