What amount must be remitted if the following invoices, all with terms 4/10, 2/30, n/60, are paid on May 10?
$850 less 20%, 10% dated March 21
$960 less 30%, 16 2/3% dated April 10
$1040 less 33 1/3%, 25%, 5% dated April 30
7896
What amount must be remitted if the following invoices, all with terms 4/10, 2/30, n/60, are paid on May 10?
$850 less 20%, 10% dated March 21
$960 less 30%, 16 2/3% dated April 10
$1040 less 33 1/3%, 25%, 5% dated April 30
To calculate the amount to be remitted for each invoice, we will follow these steps for each invoice:
1. Calculate the discount available based on the terms of the invoice.
2. Calculate the discounted amount by subtracting the discount from the original amount.
3. Determine if any additional discounts apply based on the payment date.
4. Calculate the final amount to be paid by subtracting any additional discounts from the discounted amount.
Let's calculate the amount for each invoice:
Invoice 1: $850 less 20%, 10% dated March 21
1. Calculate the first discount:
20% of $850 = $850 * 0.2 = $170
2. Calculate the discounted amount:
$850 - $170 = $680
3. There are no additional discounts available, as the payment is made on May 10.
4. Final amount to be remitted:
$680
Invoice 2: $960 less 30%, 16 2/3% dated April 10
1. Calculate the first discount:
30% of $960 = $960 * 0.3 = $288
2. Calculate the discounted amount:
$960 - $288 = $672
3. Calculate the second discount based on the payment date:
16 2/3% of $672 = $672 * (16.67 / 100) = $112
4. Final amount to be remitted:
$672 - $112 = $560
Invoice 3: $1040 less 33 1/3%, 25%, 5% dated April 30
1. Calculate the first discount:
33 1/3% of $1040 = $1040 * (33.33 / 100) = $346.67 (approximately)
2. Calculate the discounted amount:
$1040 - $346.67 = $693.33 (approximately)
3. Calculate the second discount based on the payment date:
25% of $693.33 = $693.33 * 0.25 = $173.33 (approximately)
4. Calculate the third discount based on the payment date:
5% of $693.33 = $693.33 * 0.05 = $34.67 (approximately)
5. Final amount to be remitted:
$693.33 - $173.33 - $34.67 = $485.33 (approximately)
Therefore, the amounts to be remitted for each invoice are as follows:
Invoice 1: $680
Invoice 2: $560
Invoice 3: $485.33 (approximately)
To calculate the amount that must be remitted for each invoice, we need to determine the discounted price based on the given terms. Let's break down the calculation for each invoice.
Invoice 1:
Amount: $850
Discount: 20% off
Payment terms: 4/10, 2/30, n/60
Since the payment is made on May 10, which is within the 2/30 discount period, we will apply the 2% discount.
Step 1: Calculate the discounted price by subtracting the discount from the original amount.
Discounted Price = $850 - (20% of $850) = $850 - ($850 * 0.20) = $850 - $170 = $680
Invoice 2:
Amount: $960
Discount: 30% off, 16 2/3% off
Payment terms: 4/10, 2/30, n/60
Since the payment is made on May 10, which is within the 4/10 discount period, we will apply the 4% discount.
Step 1: Calculate the discounted price by subtracting the initial 30% discount.
Discounted Price after 30% off = $960 - (30% of $960) = $960 - ($960 * 0.30) = $960 - $288 = $672
Since the remaining payment is made between the 4/10 and 2/30 discount periods, we will apply an additional 2% discount.
Step 2: Calculate the discounted price after the additional 2% discount.
Final Discounted Price = $672 - (2% of $672) = $672 - ($672 * 0.02) = $672 - $13.44 = $658.56
Invoice 3:
Amount: $1040
Discount: 33 1/3% off, 25% off, 5% off
Payment terms: 4/10, 2/30, n/60
Since the payment is made on May 10, which is within the 4/10 discount period, we will apply the 4% discount.
Step 1: Calculate the discounted price by subtracting the initial 33 1/3% discount.
Discounted Price after 33 1/3% off = $1040 - (33 1/3% of $1040) = $1040 - ($1040 * 0.3333) = $1040 - $346.66 = $693.34
Since the remaining payment is made between the 4/10 and 2/30 discount periods, we will apply an additional 2% discount.
Step 2: Calculate the discounted price after the additional 2% discount.
Discounted Price after 2% off = $693.34 - (2% of $693.34) = $693.34 - ($693.34 * 0.02) = $693.34 - $13.87 = $679.47
Since the remaining payment is made after the 2/30 discount period, there is no additional discount.
So, the amounts that must be remitted for each invoice are as follows:
Invoice 1: $680
Invoice 2: $658.56
Invoice 3: $679.47