Suppose a certain appliance store purchases the following items. Calculate the extended total after the trade discounts for each line, the invoice subtotal, and the invoice total. (Round your answers to the nearest cent.) TradeDiscountsExtendedQuantityUnitMerchandiseUnit ListTotal150ea.Blenders$69.9520/15/15400ea.Toasters$38.8820/10/10$4%2418doz.Coffee Mills$244.3030/9/712doz.Juicers$480.0025/10/5Invoice subtotal1.Extra 5-%o volume discount on total order2.Invoice total$%24%24%24%24%24

Answered: Trade Discounts Extended Quantity Unit…

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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Suppose a certain appliance store purchases the following items. Calculate the extended total after the trade discounts for each line, the invoice subtotal, and the invoice total. (Round your answers to the nearest cent.)

Trade
Discounts
Extended
Quantity
Unit
Merchandise
Unit List
Total
150
ea.
Blenders
$69.95
20/15/15
400
ea.
Toasters
$38.88
20/10/10
$4
%24
18
doz.
Coffee Mills
$244.30
30/9/7
12
doz.
Juicers
$480.00
25/10/5
Invoice subtotal
1.
Extra 5-%o volume discount on total order
2.
Invoice total
$
%24
%24
%24
%24
%24

Expert Solution

How to calculate

For the trade discount 20/15/15 of Blenders calculated net price factor as follows.

100% 100%

-20% -15% - 15%

80% x 85% x 85%

The net price factor:

0.80 x 0.85 x 0.85 = 0.578

The extended total is calculated as below.

Extended total = Number of items Unit price

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