Question

Delta furnishings received an invoice dated may 10 for a shipment of goods received june 21. The invoice was for a $8400.00 less 33 1/3 % and 12 1/2% with terms 3/20, R.O.G. How much must Delta pay on july 9 to reduce its debt (a) by $2000, (b) to $2000?

Answer 1

Answer:

The right solution is:

(a) $1,940

(b) $2,813

Step-by-step explanation:

Given:

Invoice amount

= $8,400

Discount 1

= 33.33%

Discount 2

= 12.5%

So,

The net payable amount will be:

= $8400\times [1 - \frac{100}{300} ]\times [1 - \frac{12.5}{100} ]$

= $8400\times \frac{2}{3}\times 0.875$

= $4900$ ($)

Now,

(a)

Amount paid will be:

= $2000\times 0.97$

= $1940$ ($)

Balance still to be paid will be:

= $4900-2000$

= $2900$ ($)

(b)

Amount paid will be:

= $(4900- 2000)\times 0.97$

= $2900\times 0.97$

= $2813$ ($)

Balance still to be paid will be:

= $2000$ ($)

Thus the above solution is the appropriate one.