Levin Furniture buys a living room set with a 5100 list pric

Levin Furniture buys a living room set with a $5,100 list price and a 50% trade discount. Freight (FOB shipping point) of $45 is not part of the list price. What is the delivered price (including freight) of the living room set, assuming a cash discount of 2/10, n/30, ROG? The invoice had an April 8 date. Levin received the goods on April 19 and paid the invoice on April 25.

Solution

discount =$5100 * 0.50 = $2550
$5100 – $2550 = $2550

April 19 to April 25:

elapsed time from received day to making payment
25 - 19 = 6 days

so, we have to make payment in 6 days
2/10 or 20% discount for paying before 10 days or 6 days:

=$2550 * 0.2 = $510

price before delivery :
=$2550 – $510 = $2040

delivered price:

$2040 + $45 = $2085

if the $40 delivery charges also entitled to 20% discount,

then:
$(2550+45) * 0.2 = $519

delivery price:
$2595 - $519 = $2076 ..........Answer