Hyabuza Japanese Restaurant received an invoice, dated February 20, 2011, for supplies they ordered that had a list price of $2,700 from a supplier that offered a series discount of 15/8/4 and carried terms of 3/10, 1/15, N/30. How much should the restaurant remit if the bill is to be paid in full on March 1, 2011?
Well, well, looks like the Hyabuza Japanese Restaurant has quite the mathematical challenge on their hands! Let's break it down together, shall we?
First, let's calculate the series discount. The series discount of 15/8/4 means that the supplier is offering a 15% discount for the first step, then an 8% discount for the second step, and finally a 4% discount for the third step. To calculate the net price, we'll subtract the discounts one step at a time.
Step 1: 15% discount on $2,700
$2,700 * (1 - 0.15) = $2,295
Step 2: 8% discount on $2,295
$2,295 * (1 - 0.08) = $2,111.40
Step 3: 4% discount on $2,111.40
$2,111.40 * (1 - 0.04) = $2,027.66
Now that we have the net price, let's consider the terms of payment. The terms are 3/10, 1/15, N/30. This means that if the restaurant pays within 3 days, they get a 10% discount. If they pay within 10 days, they get a 1% discount. Otherwise, they need to pay the full amount within 30 days.
In this case, the restaurant wants to pay in full on March 1, 2011, which is 9 days after the invoice date. Since they did not meet the 10-day payment threshold, they cannot avail of the 1% discount. Therefore, they will have to pay the full net price of $2,027.66.
So, the final answer is that the Hyabuza Japanese Restaurant should remit $2,027.66 if they want to settle the bill in full on March 1, 2011.
I hope I was able to help! If you have any more questions, feel free to ask. And remember, when it comes to math, it's all about adding up the discounts and subtracting the payment terms – just like calculating who owes you the most laughs!
To calculate the remittance amount, we need to determine the applicable discounts and terms.
The series discount of 15/8/4 means that there are three discounts applied successively: 15%, 8%, and 4%. To calculate the amount after each discount, we can use the following formula:
Amount after discount = List price × (1 - Discount %)
First Discount:
Amount after 15% discount = $2,700 × (1 - 0.15) = $2,295
Second Discount:
Amount after 8% discount = $2,295 × (1 - 0.08) = $2,111.40
Third Discount:
Amount after 4% discount = $2,111.40 × (1 - 0.04) = $2,027.54
The terms specified are 3/10, 1/15, N/30. This means that if the bill is paid within 3 days, a 3% discount can be applied. If the bill is paid within 10 days, a 1% discount can be applied. Otherwise, the full amount is due within 30 days.
If the bill is paid within 3 days:
Amount after 3% discount = $2,027.54 × (1 - 0.03) = $1,967.71
If the bill is paid within 10 days but after 3 days:
Amount after 1% discount = $2,027.54 × (1 - 0.01) = $2,007.27
If the bill is paid after 10 days:
Amount to be remitted = $2,027.54
Therefore, the restaurant should remit:
- $1,967.71 if paid within 3 days,
- $2,007.27 if paid within 10 days but after 3 days, or
- $2,027.54 if paid after 10 days.
To calculate the amount the restaurant should remit, we need to apply the series discount and consider the payment terms. Here's how you can calculate it:
Step 1: Determine the series discount
A series discount of 15/8/4 means there are three successive discounts: 15%, 8%, and 4%. To calculate the overall discount, we need to apply these discounts in sequence.
First, calculate the discount after the first 15%:
Discount after the 1st step = List Price × (1 - 15%) = $2,700 × (1 - 0.15) = $2,295
Next, calculate the discount after the second 8%:
Discount after the 2nd step = Discount after the 1st step × (1 - 8%) = $2,295 × (1 - 0.08) = $2,112.60
Finally, calculate the discount after the third 4%:
Discount after the 3rd step = Discount after the 2nd step × (1 - 4%) = $2,112.60 × (1 - 0.04) = $2,031.26
Step 2: Determine the payment amount
The invoice terms state 3/10, 1/15, N/30. This means the restaurant can take a 3% discount if paid within 10 days, a 1% discount if paid within 15 days, and the full amount is due within 30 days.
To calculate the payment amount, we need to apply the applicable discount based on the payment date:
If the restaurant pays within 10 days:
Payment amount = Discount after the 3rd step - (Discount after the 3rd step × 3%) = $2,031.26 - ($2,031.26 × 3%) = $1,972.32
If the restaurant pays within 15 days but more than 10 days:
Payment amount = Discount after the 3rd step - (Discount after the 3rd step × 1%) = $2,031.26 - ($2,031.26 × 1%) = $2,010.95
If the restaurant pays after 15 days but before 30 days:
Payment amount = Discount after the 3rd step = $2,031.26
Step 3: Calculate any applicable sales tax or additional fees (if specified on the invoice) and add it to the payment amount. If not specified, assume there are no additional fees.
Therefore, depending on when the restaurant pays, the amount they should remit ranges from $1,972.32 to $2,031.26, excluding any additional fees or taxes specified on the invoice.