Question 1

On October 20, Revere Products purchased lamps from A&L Imports for $7,500 with terms of 4/15, n/30. On the last day of discount, Revere Products sent in a $3,000 partial payment.
A)What is the last day of discount?
B)How much credit did Revere get for the partial payment?

Accepted Answer

The answer of On October 20, Revere Products purchased lamps...

Question 2

Ace Formalwear buys tuxedos from a supplier and has an invoice amount of $27,700. The terms of the sale are 3/20, n/30. If Ace sends a partial payment of $7,400 on the discount date, what is the net amount still due?

Accepted Answer

The answer of Ace Formalwear buys tuxedos from a supplier...

Question 3

What payment should be made on an invoice in the amount of $625, dated March 7, if the terms of sale are 3/15, 2/30, n/45, and the bill is paid on April 3?

Accepted Answer

The answer of What payment should be made on an...

Question 4

The term used in quoting shipping charges that means "free on board" or "freight on board" is F.O.B.​

Accepted Answer

F.O.B. stands for "Free On Board" or "Freight On Board," indicating that the seller is responsible for goods until they are loaded on a shipping vessel, at which point the responsibility shifts to the buyer.

Question 5

Dundaff Plumbing receives an invoice for an order of copper tubing dated May 15, with terms 5/10, 15 Extra. What is the discount date?

Accepted Answer

The answer of Dundaff Plumbing receives an invoice for an...

Question 6

On August 18, Sullivan Company received an invoice in the amount of $6,700, having terms of sale of 4/15 EOM. What is the discount date?

Accepted Answer

The answer of On August 18, Sullivan Company received an...

Question 7

A document detailing a sales transaction that contains a list of goods shipped or services rendered with an account of all costs is called an order form.​

Accepted Answer

The correct term for a document detailing a sales transaction that lists goods shipped or services rendered with all costs is an invoice, not an order form. An order form is used to request goods or services.

Question 8

The Rapid Printing Company can purchase paper from Roberts Supply and receive a series discount of 20/15/10, or they can do business with National Paper Company and receive a series discount of 25/10/8.
A)Which supplier offers the better deal?
B)If Rapid ordered paper for a list price of $36,000, how much would they save by choosing the lower-priced supplier?

Accepted Answer

The answer of The Rapid Printing Company can purchase paper...

Question 9

Shiva Electronics received an invoice dated July 15 in the amount of $2,300, which included freight charges of $205. The terms of sale were 3/10, n/45. $360 of the merchandise was damaged in transit and must be returned. What is the amount due if paid on July 25?

Accepted Answer

The answer of Shiva Electronics received an invoice dated July...

Question 10

​The abbreviation gro on an invoice refers to the term grocery.​

Accepted Answer

The abbreviation "gro" on an invoice typically refers to "gross," indicating a gross amount or quantity, not "grocery."

Question 11

On April 28, The Springfield Company purchased merchandise having a list price of $20,000 from Johnson Brothers. They were given a series of trade discounts of 15/10/5. The terms of the sale were 3/15 EOM. Freight charges of $600 were added to the invoice.
A)What is the discount date?
B)What is the amount due on the discount date?

Accepted Answer

The answer of On April 28, The Springfield Company purchased...

Question 12

A paper supplier sold items listing for $24,250 to Big Box Inc. The net price of the order was $18,915. What was the trade discount rate? (Round to the nearest tenth of a percent)

Accepted Answer

The answer of A paper supplier sold items listing for...

Question 13

Greybar Electric receives an invoice for an order of wire dated March 16, with terms 3/15, 20 Extra. What is the discount date?

Accepted Answer

The answer of Greybar Electric receives an invoice for an...

Question 14

A photo shop buys some merchandise with an invoice date of March 25. The terms of sale are 3/10, n/30. Find the discount date.

Accepted Answer

The answer of A photo shop buys some merchandise with...

Question 15

Pacific Products buys merchandise from a supplier for $1,320 with terms of 4/20, n/60. The invoice is dated October 15. On October 25, Pacific sends a partial payment to the supplier of $900. What is the amount that must be paid on the net date?

Accepted Answer

The answer of Pacific Products buys merchandise from a supplier...

Question 16

B & B Auto Parts offers wholesalers a series discount of 35/20/10. Ron Clark buys $18,600 merchandise at list.
A)What is the single equivalent discount?
B)What is the net price Ron Clark will pay for the merchandise?

Accepted Answer

The answer of B & B Auto Parts offers wholesalers...

Question 17

Ring Fencing Company purchases wood in large quantities and receives trade discounts of 25/10 from their wholesaler. On May 15, Ring purchased lumber having a list price of $45,000. The terms of the sale were 2/10, n/30. What is the amount of the payment sent on May 25?

Accepted Answer

The answer of Ring Fencing Company purchases wood in large...

Question 18

To extend the total on an invoice, multiply the quantity by the unit price per item.
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​

Accepted Answer

To extend the total on an invoice, you indeed multiply the quantity of each item by its unit price to find the extended total for that item. This process is repeated for all items to calculate the total amount due on the invoice.

Question 19

Diane's Pottery Shop orders china from a supplier for $240 including $30 freight charges. The terms of sale are 3/10, n/30 ROG. The china arrives on November 21 and Diane wants to take advantage of the cash discount.
A)By what date must the invoice be paid to take advantage of the discount?
B)As the bookkeeper for Diane's how much will you send the supplier?

Accepted Answer

The answer of Diane's Pottery Shop orders china from a...

Question 20

Finney & Company purchased $1,800 of merchandise on May 6. The terms were 2/15 EOM. The sneakers were received on May 20, sent F.O.B. shipping point. Freight charges amounted to $45.
A)What is the discount date?
B)What payment must be made by that date to take advantage of the discount?

Accepted Answer

The answer of Finney & Company purchased $1,800 of merchandise...

Quiz 7: Invoices, Trade Discounts, and Cash Discounts

On October 20, Revere Products purchased lamps from A&L Imports for $7,500 with terms of 4/15, n/30. On the last day of discount, Revere Products sent in a $3,000 partial payment. A)What is the last day of discount? B)How much credit did Revere get for the partial payment?

Ace Formalwear buys tuxedos from a supplier and has an invoice amount of $27,700. The terms of the sale are 3/20, n/30. If Ace sends a partial payment of $7,400 on the discount date, what is the net amount still due?

What payment should be made on an invoice in the amount of $625, dated March 7, if the terms of sale are 3/15, 2/30, n/45, and the bill is paid on April 3?

The term used in quoting shipping charges that means "free on board" or "freight on board" is F.O.B.​

Dundaff Plumbing receives an invoice for an order of copper tubing dated May 15, with terms 5/10, 15 Extra. What is the discount date?

On August 18, Sullivan Company received an invoice in the amount of $6,700, having terms of sale of 4/15 EOM. What is the discount date?

A document detailing a sales transaction that contains a list of goods shipped or services rendered with an account of all costs is called an order form.​

Shiva Electronics received an invoice dated July 15 in the amount of $2,300, which included freight charges of $205. The terms of sale were 3/10, n/45. $360 of the merchandise was damaged in transit and must be returned. What is the amount due if paid on July 25?

​The abbreviation gro on an invoice refers to the term grocery.​

A paper supplier sold items listing for $24,250 to Big Box Inc. The net price of the order was $18,915. What was the trade discount rate? (Round to the nearest tenth of a percent)

Greybar Electric receives an invoice for an order of wire dated March 16, with terms 3/15, 20 Extra. What is the discount date?

A photo shop buys some merchandise with an invoice date of March 25. The terms of sale are 3/10, n/30. Find the discount date.

Pacific Products buys merchandise from a supplier for $1,320 with terms of 4/20, n/60. The invoice is dated October 15. On October 25, Pacific sends a partial payment to the supplier of $900. What is the amount that must be paid on the net date?

B & B Auto Parts offers wholesalers a series discount of 35/20/10. Ron Clark buys $18,600 merchandise at list. A)What is the single equivalent discount? B)What is the net price Ron Clark will pay for the merchandise?

Ring Fencing Company purchases wood in large quantities and receives trade discounts of 25/10 from their wholesaler. On May 15, Ring purchased lumber having a list price of $45,000. The terms of the sale were 2/10, n/30. What is the amount of the payment sent on May 25?

To extend the total on an invoice, multiply the quantity by the unit price per item. ​ ​

Finney & Company purchased $1,800 of merchandise on May 6. The terms were 2/15 EOM. The sneakers were received on May 20, sent F.O.B. shipping point. Freight charges amounted to $45. A)What is the discount date? B)What payment must be made by that date to take advantage of the discount?

The term used in quoting shipping charges that means "free on board" or "freight on board" is F.O.B.

A document detailing a sales transaction that contains a list of goods shipped or services rendered with an account of all costs is called an order form.

The abbreviation gro on an invoice refers to the term grocery.

To extend the total on an invoice, multiply the quantity by the unit price per item.