A furniture store receives an invoice dated Sept. 27 for 5 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 Mel pays on Nov. 2, what amount would be paid. (Be sure to include the freight cost.)

Question

A furniture store receives an invoice dated Sept. 27 for 5 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 Mel pays on Nov. 2, what amount would be paid. (Be sure to include the freight cost.)

Answer 1

Discount: I don't know what 5/8/3 means.

Answer 2

A furniture store receives an invoice dated Sept. 27 for 5 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 Mel pays on Nov. 2, what amount would be paid. (Be sure to include the freight cost.)

Answer 3

To find the amount that would be paid, we need to follow these steps:

Step 1: Calculate the total cost of the bedroom sets.
The invoice states that there are 5 bedroom sets at $3,000 each. So, the total cost of the bedroom sets is 5 * $3,000 = $15,000.

Step 2: Calculate the trade discount.
The trade discount is given as 5/8/3, which means a series of discounts: 5% off the total cost, then an additional 8% off the remaining amount, and finally a further 3% off the remaining amount.

First, apply the 5% discount to the total cost: $15,000 * 5% = $750. Subtract this amount from the total cost: $15,000 - $750 = $14,250.

Next, apply the 8% discount to the remaining amount: $14,250 * 8% = $1,140. Subtract this amount from the remaining amount: $14,250 - $1,140 = $13,110.

Lastly, apply the 3% discount to the final amount: $13,110 * 3% = $393.3. Subtract this amount from the remaining amount: $13,110 - $393.3 = $12,716.7.

Step 3: Add the freight cost.
The seller prepaid the freight of $200, so we need to add this to the final amount: $12,716.7 + $200 = $12,916.7.

Step 4: Calculate the discount for paying on time.
The terms are stated as 2/10 EOM, which means there is a 2% discount for paying within 10 days at the end of the month. Since Mel pays on Nov. 2, the payment is within the discount period.

Calculate the discount: $12,916.7 * 2% = $258.33.

Step 5: Calculate the final payment amount.
Subtract the discount from the previous subtotal: $12,916.7 - $258.33 = $12,658.37.

Therefore, Mel would need to pay $12,658.37.