Math for business

posted by .

I am trying to figure this out. I know I am not right. I was looking for some help on how to get the proper answer.

Morgan Company received from Lee Company an invoice dated September 27. Terms were 2/10 EOM. List price on the invoice was $5,000 (freight not included). Morgan receives a 9/7 chain discount. Freight charges are Morgan’s responsibility but Lee agreed to prepay the $150 freight charge. Morgan pays the invoice November 9. What does Morgan pay Lee?

Here is my answer:

So I know because he pays on the 9th he gets a 2% discount.

Which now brings the list price from $5,000 to $4,900

This is the part where I am confused 9/7 discount.So when I convert it to a percent it is 1.29%..Is this right.

So I think i take $4,900 - 1.29% so then ($63.21)<--So this would be the dollar amount I subtract from $4,900
= $4,836.79.

I am not sure if I subtract or add $150.00.

Can anyone help me?

  • Math for business -

    Beginning price $5000. Terms are 2/10 End of Month. Paying on the 9th (before the 10th day of the month) triggers the 2% discount. $100 off.
    New price $4900. Chain discounts apply. 4900 * 0.91 * 0.93 = $4146.87
    Add in the $150 that Morgan agreed to repay for the shipping, the the final invoice price is $4316.87

  • Math for business -

    Invoice dated september 27 Morgan pay invoice November 9 therefore the 2% discount expired.

    5000x.09=450. 5000-450=4550. 4550x.07=318.50 4550-3180.50=4231.50+ 150=4381.20

  • Math for business -

    2/10 Discount (considering Morgan payed before the 10 day period)

    Discount: $5,000 * 2/10 = $100 (deducted)

    = Net Price: $4,900
    Chain Discount (9/7)
    = $4900 * .09 = $441 --> $4900-$441= $4459 --> $4459 * .07 = $312.13 --> $4459- $312.13 = $4146.87
    Add Freight Charge of $150
    $4146.87 +$150
    = $4296.87

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Math

    The Higgins Company sold the Northwest Company some machinery parts. The net price was $10,000, and the terms were 3 / 10 , n / 60. The items were shipped FOB shipping point and the shipping charges were $100. The date of the invoice …
  2. business math

    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 …
  3. Business Finance

    Morgan company received from Lee Company an invoice dated September 27. Terms were 2/10 EOM. List price on the invoice was $5000(freight not included). Morgan recievves a 9/7 chain discount. Frieght charges are Morgan's responsibility …
  4. business math

    Mel's Furniture received an invoice dated September 27 for five bedroom sets at $3,000 each.The invoice indicated av trade discount of 5/8/3. The seller of the furniture prepaid the freight of $200. Terms were 2/10 EOM.Assuming Mel …
  5. finance math

    Morgan Company received from Lee Company an invoice dated Sep 27. Terms were 2/10EOM. List price on the invoice was 5,000(freight not included) Morgan receives a 9/7 chain discount. Fright charges are Morgans responibility but lee …
  6. math

    Morgan company received from Lee company an invoice dated September 27.Terms were 2/10 EOM.List price on the invoice were $ 5, 000(freight not included). Morgan received a 9/7 chain discount. Freight charges are Morgan’s responsibilities …
  7. math

    Morgan Company received from Lee Company an invoice dated September 27. Terms were 2-10 EOM. List price on the invoice was $5000.00(freight not included). Morgan receives a 9/7 chain discount. Freight charges are Morgans resposibility …
  8. Mathematics

    price company received an invoice in the amount of $3,800 dated may 24 for merchandise they purchased. the terms of the sales are 3/15, 2/30, n/45. what payment should be made if the invoice is paid on June 20?
  9. Business Math

    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 FOB. Assuming …
  10. Business Math

    Jones Manufacturing sent Blue Company an invoice for equipment with a list price of $10,000. The invoice is dated July 27 with terms of 2/10, EOM. Blue Company is entitled to a 40% trade discount. If the invoice is paid on September …

More Similar Questions