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.)

To calculate the amount Mel would pay, we need to break down the given information step by step.

1. Calculate the total cost of the bedroom sets:
Mel's Furniture received an invoice for five bedroom sets at $3,000 each. So the total cost of the bedroom sets before any discounts or freight charges is:
Total Cost = (Number of bedroom sets) x (Cost per bedroom set)
Total Cost = 5 x $3,000
Total Cost = $15,000

2. Calculate the trade discount:
The trade discount is given as 5/8/3. This means there are three tiers of discounts: 5%, 8%, and 3%.

First, calculate the first tier discount of 5%:
Discount Tier 1 = (5/100) x Total Cost
Discount Tier 1 = (5/100) x $15,000
Discount Tier 1 = $750

Next, calculate the second tier discount of 8%:
Discount Tier 2 = (8/100) x (Total Cost - Discount Tier 1)
Discount Tier 2 = (8/100) x ($15,000 - $750)
Discount Tier 2 = $1,140

Finally, calculate the third tier discount of 3%:
Discount Tier 3 = (3/100) x (Total Cost - (Discount Tier 1 + Discount Tier 2))
Discount Tier 3 = (3/100) x ($15,000 - ($750 + $1,140))
Discount Tier 3 = $315

3. Calculate the total discount:
The total discount is the sum of all three discount tiers:
Total Discount = Discount Tier 1 + Discount Tier 2 + Discount Tier 3
Total Discount = $750 + $1,140 + $315
Total Discount = $2,205

4. Subtract the total discount from the total cost of the bedroom sets to get the discounted price:
Discounted Price = Total Cost - Total Discount
Discounted Price = $15,000 - $2,205
Discounted Price = $12,795

5. Add the freight cost of $200:
Total Amount to be paid = Discounted Price + Freight Cost
Total Amount to be paid = $12,795 + $200
Total Amount to be paid = $12,995

6. Calculate the payment due after the discount terms:
Mel has terms of 2/10 EOM, which means they get a 2% discount if paid within 10 days, and the payment is due at the end of the month (EOM).

If Mel pays on November 2, they are not eligible for the 2% discount. Therefore, the payment amount would be the total amount to be paid:
Payment Amount = Total Amount to be paid
Payment Amount = $12,995

Therefore, Mel would need to pay $12,995 on November 2, including the freight cost.