A wholesaler ordered 14 bolts of drapery fabric $5.50 per yard. Each bolt had 60 yards. The order qualified for a quantity discount of 2% the merchandise was shipped FOB factory freight charges of $21.80 were prepaid. The invoice was dated March 18 with terms of 2/15, N/30. How much should be remitted if the invoice is paid March 29
42.56
To calculate the total amount to be remitted for the invoice, we need to take into account the price of the fabric, the quantity discount, and the prepaid freight charges. Let's break down the calculations step by step:
1. Calculate the total price of the fabric:
Each bolt of fabric costs $5.50 per yard, and each bolt has 60 yards. So, the price per bolt is:
$5.50 * 60 = $330.00
The wholesaler ordered 14 bolts, so the total cost of the fabric is:
$330.00 * 14 = $4,620.00
2. Apply the quantity discount:
The order qualifies for a 2% quantity discount. To calculate the discount, multiply the total cost of the fabric by 2%:
$4,620.00 * 0.02 = $92.40
3. Subtract the discount from the total cost of the fabric:
$4,620.00 - $92.40 = $4,527.60
4. Add the prepaid freight charges:
The prepaid freight charges are $21.80, so add this to the total cost of the fabric:
$4,527.60 + $21.80 = $4,549.40
5. Calculate the payment discount:
The invoice is dated March 18 and has terms of 2/15, N/30. This means that if the invoice is paid within 15 days, a 2% discount can be applied. In this case, the invoice is paid on March 29, which is within the discount period. So, to calculate the payment discount, multiply the total amount by 2%:
$4,549.40 * 0.02 = $90.99
6. Subtract the payment discount from the total amount:
$4,549.40 - $90.99 = $4,458.41
Therefore, the amount to be remitted if the invoice is paid on March 29 is $4,458.41.