City Cellular purchased $28,900 in cell phones on April 25. The terms of sale were 4/20, 3/30, n/60. Freight terms were F.O.B. destination. Returned goods amounted to $650. What is the net amount due if City Cellular sends the manufacturer a partial payment of $5,000 on May 20?
$24,550
If the manufacturer from the question above charges a 4½% late fee, how much would City Cellular owe if it did not pay the balance by the net date?
To find the net amount due, we need to calculate the total purchase amount, deduct any returned goods, and subtract any partial payment made.
1. Calculate the total purchase amount:
Total purchase amount = $28,900
2. Calculate the returned goods:
Returned goods = $650
3. Subtract the returned goods from the total purchase amount:
Net purchase amount = Total purchase amount - Returned goods
= $28,900 - $650
= $28,250
4. Calculate the remaining balance after the partial payment:
Remaining balance = Net purchase amount - Partial payment
= $28,250 - $5,000
= $23,250
Therefore, the net amount due is $23,250.