Question

On March 30, Century Television received an invoice dated March 28 from ACME Manufacturing for 51 televisions at a cost of $100 each. Century received a 8/5/5 chain discount. Shipping terms were FOB shipping point. ACME prepaid the $91 freight. Terms were 5/10 EOM. When Century received the goods, 3 sets were defective. Century returned these sets to ACME. On April 08, Century sent a $275 partial payment. Century will pay the balance on May 06. What is Century’s final payment on May 06? Assume no taxes.

Answer 1

You are given that on March 30, Century Television received an invoice dated March 28 from ACME Manufacturing for 51 televisions at a cost of $100 each. Century received a 8/5/5 chain discount. Shipping terms were FOB shipping point. ACME prepaid the $91 freight. Terms were 5/10 EOM. When Century received the goods, 3 sets were defective. Century returned these sets to ACME. On April 08, Century sent a $275 partial payment. Century will pay the balance on May 06. Century’s final payment on May 06 is $580