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Lada Lada
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6 years ago
A certain Canadian company received an invoice dated March 20 from their Cambodian supplier for the following shipment of goods that they received on April 1.
   2000 jeans at $25.60 each;
   3050 shirts at $15.25 each;
   1000 men hats at $2.50 each;
   1500 women hats at $3.00 each.
The terms of the invoice stated 4/20, n/45 ROG and all items are subject to trade discounts of 15%, 5%.
a) What is the last day of the discount period?
b) What is the amount due if the invoice is paid in full on April 19?
c) If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $25 000.00?
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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Replies
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6 years ago
a)    April 20

b)    2000 * 25.60 =  $51 200
   3050 * 15.25 =  $46 512.50
   1000 * 2.5      = $  2 500.00
   1500 * 3.00   = $   4 500.00
   $104 712.50
   Net Amount = 104712.5(0.85)(0.95) = $84 555.34375
   Payment on April 19 is within the 4% discount period
   Full Payment = 84555.34375(0.96) = $81 173.13

c)   Net Amount   =  $84 555.34375
   Remaining balance   =  25 000.00
   Amount of reduction =  $59 555.34375
   Discount of 5% applies
   Payment = 59555.34375(0.96)
    = $57 173.13
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