Please answer the following questions showing all of your work. Please circle your answers.
1. A buyer purchased 75 ginger jar lamps at a list price of $40 each. The trade discounts were 30%, 20%, and 5% with terms of 2/10, net 30. The lamps were shipped and billed on October 18 and were received October 22. The bill was paid on October 31. What amount was paid?
2. On June 10, the buyer for the Charm Stores placed an order for 24 dozen turtleneck tops costing $81 per dozen with AOK Inc. The vendor offered the terms of 8/10 EOM, ROG, FOB Store. What amount should be remitted if the shipment was received October 26 and paid on November 10?
3. An invoice for $2,300 has terms of 2/10–30X, net 60, FOB factory. The vendor prepaid the shipping charges of $34. The invoice was dated August 29 and was paid on September 24. How much should the vendor have received?
4. Jean’s Fashion placed an order for 12 dozen silk scarves that cost $120 per dozen with freight charges of $18. The terms negotiated on this purchase were 2/10–30X, n/60 EOM, FOB store, anticipation permitted. If the invoice is dated June 10, determine the payment to be made to the manufacturer on July 10
5. Annie’s on the Lake needs to purchase new sterling flatware. The owner finds three patterns she likes from two separate vendors. Which is the better deal? Show all work.
15 sets of Pattern A: List price $1400 each set 15 sets of Pattern B: List price $1600 for set. 15 sets of Pattern C: List price $1800 for set.
Trade discounts from list price: 40%, less 25%.
Quantity discounts offered: none.
Cash discount: 2/10, n/30.
FOB: Factory/shipping charges are running 0.5% of final cost.
Trade discount from list price: 0%, less 20%, less 5%.
Quantity discount: 1% for orders over $10,000; 1.5% for orders over $15,000; and 2% for orders over $20,000. Cash discount: 2/10–60X, shipping is FOB store.
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