Mel’s Furniture received an invoice dated September 27

for five bedroom sets at $3,000 each. The invoice indicated
a trade discount of 5/8/3. The seller of the furniture
prepaid the freight of $200. Terms were 2/10 EOM.
Assuming Mel pays on November 2, what amount would
be paid? (Be sure to include the freight cost.)

Is the answer Mel will $500

$12916.70

To calculate the amount to be paid by Mel, we need to determine the following:

1. Total cost of the bedroom sets before discount
2. Discount amount
3. Net cost after discount
4. Applicable discount for early payment
5. Final amount to be paid

Let's calculate each step:

Step 1: Total cost of the bedroom sets before discount
The invoice states that Mel's Furniture ordered five bedroom sets at $3,000 each.
Total cost before discount = 5 sets * $3,000/set = $15,000

Step 2: Discount amount
The trade discount is given as 5/8/3. This indicates a series of discounts. Let's break it down:
- The first discount is 5%.
- The second discount is 8%.
- The third discount is 3%.

To calculate the total discount:
Discount = Total cost before discount * (first discount/100) * (second discount/100) * (third discount/100)
Discount = $15,000 * (5/100) * (8/100) * (3/100) = $180

Step 3: Net cost after discount
Net cost = Total cost before discount - Discount
Net cost = $15,000 - $180 = $14,820

Step 4: Applicable discount for early payment
The terms state 2/10 EOM, which means a 2% discount is offered for payment within 10 days of the end of the month.

Step 5: Final amount to be paid
To calculate the final amount:
Amount to be paid = Net cost - (Net cost * applicable early payment discount/100)
Amount to be paid = $14,820 - ($14,820 * 2/100) = $14,820 - $296.40 = $14,523.60

Finally, remember to include the freight cost of $200 in the amount to be paid:
Final amount to be paid = Amount to be paid + Freight cost
Final amount to be paid = $14,523.60 + $200 = $14,723.60

Therefore, the amount Mel would pay, including the freight cost, would be $14,723.60.

To calculate the amount that Mel would pay, we need to consider the cost of the bedroom sets, any trade discounts given, the freight cost, and the terms of payment.

First, let's calculate the cost of the bedroom sets without considering the discount. Mel received 5 bedroom sets at $3,000 each, so the total cost of the sets would be 5 x $3,000 = $15,000.

Next, let's calculate the trade discount. The given discount is 5/8/3. This means that Mel will receive a discount of 5% for paying within 10 days, an additional 8% for buying 5 or more bedroom sets, and another 3% for prepaying the freight.

To calculate the discount amount, we need to find the net price after each discount step. Start by calculating the discount for the prepayment of freight: 3% of $15,000 = $450. Deduct this amount from the original cost: $15,000 - $450 = $14,550.

Next, calculate the discount for buying 5 or more bedroom sets. Apply an additional 8% discount to the net price: 8% of $14,550 = $1,164. Deduct this amount from the net price: $14,550 - $1,164 = $13,386.

Lastly, calculate the discount for paying within 10 days. Apply a 5% discount to the remaining net price: 5% of $13,386 = $669.3. Deduct this amount from the net price: $13,386 - $669.3 = $12,716.7.

Now, let's add the freight cost of $200: $12,716.7 + $200 = $12,916.7.

Since the terms are 2/10 EOM, Mel will receive a 2% discount if payment is made within 10 days, otherwise, the full payment amount is due.

If Mel pays on November 2, the invoice date of September 27 is more than 10 days ago, so the full payment amount is due with no discount. Therefore, Mel would need to pay the full amount of $12,916.7, which includes the cost of the bedroom sets and the prepaid freight.