**Problem Statement:**Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period.**Invoice Details:**| Merchandise (gross) | Terms | Payment ||---------------------|-----------|---------|| a. $8,200 | 2/10, n/60| || b. $24,800 | 1/15, EOM | || c. $81,400 | 1/10, n/30| || d. $18,000 | 3/15, n/45| |**Explanation of Terms:**- **2/10, n/60**: A 2% discount is available if paid within 10 days; otherwise, the net amount is due in 60 days.- **1/15, EOM**: A 1% discount is available if paid within 15 days of the end of the month.- **1/10, n/30**: A 1% discount is available if paid within 10 days; otherwise, the net amount is due in 30 days.- **3/15, n/45**: A 3% discount is available if paid within 15 days; otherwise, the net amount is due in 45 days.**Objective:**To find the net payment amount after applying the respective discounts for each invoice.

Formula: Cash discount = Gross amount x discount % Payment = Gross amount - Cash discount

Answered: Compute the amount to be paid for each…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Compute the amount to be paid for each of the four separate invoices assuming Merchandise Terms Payment (gross) a. $ 8,200 2/10, n/60 b. 24,800 1/15, EOM c. 81,400 1/10, n/30 d. 18,000 3/15, n/45