A bedroom set lists for 7000 and carries a trade discount of

A bedroom set lists for $7,000 and carries a trade discount of 20 percent. Freight (FOB shipping point) of $120 is not part of the list price. Calculate the final price (also include cost of freight) of the bedroom set assuming terms of 2/10, n/30 ROG. The date of the invoice was July 10 with the goods being received August 11. The bill was paid on August 20

Solution

Cost of bedroom set list = 7000

Trade discount   20%     = 1400

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                                        5600

Add: Freight                        120

           Total cost                5720

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