A cellular company purchased $25,800 in cell phones on June 25. The terms of sale were 4/20, 3/30, n/60. Freight terms were F.O.B. destination. Returned goods amounted to $650. (a) What is the net amount due (in $) if the cellular company sends the manufacturer a partial payment of $4,000 on July 20? (Round your answer to the nearest cent.) $ (b) What is the net date? ---Select--- January February March April May June July August September October November December (c) If the manufacturer charges a 4.5% late fee, how much (in $) would the cellular company owe if it did not pay the balance by the net date? (Round your answer to the nearest cent.) $
A cellular company purchased $25,800 in cell phones on June 25. The terms of sale were 4/20, 3/30, n/60. Freight terms were F.O.B. destination. Returned goods amounted to $650. (a) What is the net amount due (in $) if the cellular company sends the manufacturer a partial payment of $4,000 on July 20? (Round your answer to the nearest cent.) $ (b) What is the net date? ---Select--- January February March April May June July August September October November December (c) If the manufacturer charges a 4.5% late fee, how much (in $) would the cellular company owe if it did not pay the balance by the net date? (Round your answer to the nearest cent.) $
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
A cellular company purchased $25,800 in cell phones on June 25. The terms of sale were 4/20, 3/30, n/60. Freight terms were F.O.B. destination. Returned goods amounted to $650.
(a)
What is the net amount due (in $) if the cellular company sends the manufacturer a partial payment of $4,000 on July 20? (Round your answer to the nearest cent.)
$
(b)
What is the net date?
---Select--- January February March April May June July August September October November December
(c)
If the manufacturer charges a
4.5%
late fee, how much (in $) would the cellular company owe if it did not pay the balance by the net date? (Round your answer to the nearest cent.)$
Expert Solution
Step 1
The given Discount terms are,
4/20, 3/30, n/60
This implies, that if Payment has been made within the 20 days of the purchase then, 4% discount will be given and if the payment is made after 20 days but before 30 days then 3% discount will be given.
If the payment is made after 30 days then no discount will be given and payment is due from 60th day.
Assumption : All the transactions are mutually inclusive and related to each other.
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