The vendor shipped and invoiced the following goods on June 7:   200 folding chairs at $50 list price.   Trade discounts were 40% and 5%; and a 2% quantity discount for an order of 200 or more folding chairs was provided by the vendor.  Invoice dating and cash discount terms were determined at 5/20, EOM.   What is the trade discount$ for the entire merchandise?  What is the quantity discount$ for the entire merchandise?  What amount must be remitted to the vendor if the invoice is paid on July 15?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Remember order of discounts (TD à QD à CD)

 
   

The vendor shipped and invoiced the following goods on June 7:

 

200 folding chairs at $50 list price.

 

Trade discounts were 40% and 5%; and a 2% quantity discount for an order of 200 or more folding chairs was provided by the vendor.  Invoice dating and cash discount terms were determined at 5/20, EOM.

 

  • What is the trade discount$ for the entire merchandise? 
  • What is the quantity discount$ for the entire merchandise? 
  • What amount must be remitted to the vendor if the invoice is paid on July 15
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