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

Trade discount = 20%

Time taken to pay the bill = 20 -11 = 9

Since the bill is paid within 10 days of buying the product, hence there will be discount of 20% available

Actual Price of Bedroom set lists = 7000 * 80/100 + FOB Shipping

= 5600 + 120

= 5720$
Hence the final price including the FOB shipping point is equal to 5720$