Complete the following by calculating the cash discount and net amount paid: (If more than one discount, assume date of last discount) Gross amount of invoice (freight charge already included) $ 800 Freight charge None Date of invoice 8/17 Terms of invoice 3/10, 1/15, n/30 Date of payment 8/29 Cash discount Net amount paid
Complete the following by calculating the cash discount and net amount paid: (If more than one discount, assume date of last discount) Gross amount of invoice (freight charge already included) $ 800 Freight charge None Date of invoice 8/17 Terms of invoice 3/10, 1/15, n/30 Date of payment 8/29 Cash discount Net amount paid
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:**Invoice Payment Calculation Exercise**
Complete the following by calculating the cash discount and net amount paid:
(If more than one discount, assume date of last discount.)
| **Gross amount of invoice** (freight charge already included) | **Freight charge** | **Date of invoice** | **Terms of invoice** | **Date of payment** | **Cash discount** | **Net amount paid** |
| --- | --- | --- | --- | --- | --- | --- |
| $800 | None | 8/17 | 3/10, 1/15, n/30 | 8/29 | | |
**Instructions:**
1. **Gross Amount of Invoice**: The total cost including the freight charge (which is noted as 'None' here) is $800.
2. **Freight Charge**: There is no additional freight charge included in this invoice.
3. **Date of Invoice**: The invoice date is 8/17.
4. **Terms of Invoice**:
- 3/10: 3% discount if paid within 10 days.
- 1/15: 1% discount if paid within 15 days.
- n/30: Net amount due within 30 days without any discount.
5. **Date of Payment**: The payment is made on 8/29.
6. **Cash Discount**: Calculate the applicable cash discount based on the terms and the date of payment.
7. **Net Amount Paid**: Determine the final amount after applying the cash discount.
**Steps to Solve:**
- Check the payment date (8/29) against the terms of the invoice.
- Determine if the payment qualifies for the 3% or 1% discount.
- Calculate the discount and subtract it from the gross amount to find the net amount paid.
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