Deck 8: Invoices and Discounts

Question 1

Mr. Taylor purchased furniture for his office for a total of $1,109.46 including 6.25% in sales tax. How much was the furniture before the tax?

A) $1,404.12
B) $1,044.20
C) $1,004.20
D) $1,040.12

Answer 1

B

Question 2

When entering a formula in Excel, the formula must begin with a parenthesis to indicate to Excel that what is being entered is a calculation.

Answer 2

False

Question 3

A retailer tracks list prices and discounts in an Excel spreadsheet so owners can analyze how different sales will affect the company's bottom line. One item in Cell B4 has a list price of $172.89. Varying rates for discount 1 and discount 2 can be entered into Cells B5 and B6. Which formula should be entered into Cell B7 to calculate the net-price equivalent?

A) =B4*B5*B6
B) =B4*(1-B5)*(1-B6)
C) =1-(B5+B6)
D) =(1-B5)*(1-B6)

Answer 3

D

Question 4

Ronco's Hardware received an invoice for $10,429.38, dated September 17, with terms 3/10, 2/30, n/45. The hardware store pays the invoice on October 5. How much should be paid?

A) $10,116.50
B) $10,220.79
C) $10,328.18
D) $10,429.38

Question 5

Adya ordered books at a cost of $113. She is charged an additional 5.95% in sales tax and $12 in shipping costs. What is the total cost if the shipping charges are not taxable?

A) $119.72
B) $129.13
C) $131.72
D) $132.44

Question 6

A commercial lawn mower has a list price of $1,482.20. Jacob's Landscaping receives a 22% trade discount. How much is the discount?

A) $326.08
B) $296.44
C) $32.60
D) $29.64

Question 7

What is the net amount due on an invoice where the invoice amount is $2,589 and the terms are 2/10, n/45? Assume the invoice is paid within the discount period.

A) $2,640.78
B) $2,537.22
C) $2,389.28
D) $2,071.20

Question 8

Excel can be used to make templates for forms such as invoices.

Question 9

There is an invoice amount of $3,545 which includes $120 in freight charges. The terms are 2/10, n/45 and the invoice is paid within the discount period. What is the net invoice amount due?

Question 10

What is a trade discount?

A) A discount that is deducted after shipping charges have been added to an invoice
B) A discount from the list price which is deducted by the seller for specific buyers
C) A discount that is deducted by the buyer when payment is received within the discount period
D) The difference between 100% and the discount rate

Question 11

Which shows how to find the net price equivalent with the series discount 15/20/10 using the complement method?

A) (0.15 * 0.2 * 0.1) * price
B) [1 - (0.15 * 0.2 * 0.1) * price
C) [1 - (0.85 * 0.8 * 0.9)] * price
D) (0.85 * 0.8 * 0.9) * price

Question 12

Kermit and Chris bought a vacation package for $3,999. There is a 4.75% sales tax added to the package. What is the total cost?

A) $4,188.95
B) $4,118.15
C) $3,817.66
D) $3,813.05

Question 13

Use the table to find the net price of an item that lists for $480 with a series discount of 10%, 10%, 5%.

A) $346.28
B) $369.36
C) $235.80
D) $110.64

Question 14

Cherie's Lawn and Garden received a shipment of live plants for a list price of $2,890. Cherie was given a series discount of 15/10. The terms of the invoice are 3/10, n/30. How much should Cherie pay if she pays within the discount period?

A) $2,803.30
B) $2,210.85
C) $2,144.52
D) $2,033.25

Question 15

Jamal's Carburetors shipped 14 carburetor rebuild kits to a customer. The price of each kit is $48.29. The customer receives a 35% trade discount. The shipping type is FOB destination at a cost of $67.50. What is the invoice total?

A) $415.82
B) $439.44
C) $652.43
D) $719.93

Question 16

Marianne spent $116.56 at the cosmetic counter in a department store. Included in the price is 5.5% sales tax. What is the selling price of the cosmetics she purchased?

A) $122.91
B) $115.25
C) $111.09
D) $110.48

Question 17

What does the term 3/10, n/30 mean?

A) 10% discount if paid within 3 days, payment due 30 days from invoice date
B) 30% discount if paid within 10 days, payment due 30 days from invoice date
C) Minimum payment of 3/10 of the balance due within 30 days from invoice date
D) 3% discount if paid within 10 days, payment due 30 days from invoice date

Question 18

An invoice amount is $2,169.50 and the terms are 3/10 EOM. A partial payment of $750 is made within the discount period. What is the balance due on the invoice after the partial payment?

A) $1,396.30
B) $1,419.50
C) $1,491.50
D) $1,496.30

Question 19

The term 3/10 EOM means that a 3% discount will be applied if the payment is received within 10 days of the invoice date.

Question 20

What is the net amount due on an invoice where the invoice amount is $572.39 and the terms are 3/15, n/30? Assume the invoice is paid within the discount period.

Question 21

There is an invoice with an invoice amount of $927.89. The terms are 3/10, n/30. There are $19.50 in shipping charges, and the invoice is paid within the discount period. What is the cash discount and the net amount due?

Question 22

Melissa's Fantastic Fabric Purses shipped 55 purses, 20 wallets, and 32 change purses to a customer. The price of each purse is $15.65, each wallet is $12.50, and each change purse is $7.89. The customer receives a 30% trade discount. The shipping type is FOB destination at a cost of $40. What is the invoice total?

Question 23

Use the complement method to find the single discount equivalent of the series discount 10/15/20.

Question 24

Use the complement method to find the net price of an item that lists for $213 with a series discount of 20/15/10.

Question 25

An item lists for $314.79. A series discount of 10/8/5 is applied. What is the discount amount rounded to the nearest cent?

Question 26

The Radford Pet Store is purchasing four aquarium kits for $69.99 each, fifty 25-lb bags of aquarium gravel for $14.50 each, and twenty cases of fish food for $119.19 each. The pet store receives a trade discount of 30%. If there are freight charges of $89, what is the net price?

Question 27

Mario's Wholesale Pastas sells pasta to restaurants. Mario buys from a company that offers a 40% trade discount. Mario sells to his retail customers at a 25% discount. One type of pasta lists for $17.80 for 20 pounds. What is Mario's profit on this item?

Question 28

Janine runs a small deli. She received a shipment of baked goods for a list price of $573.45. Janine was given a series discount of 10/15/5. The terms of the invoice are 2/10, n/30. How much should Janine pay if she pays within the discount period?

Question 29

What does a series discount of 10/15/20 mean?

Question 30

Katy purchased music CDs for the recreation center she manages. She is given an invoice for $259.25 which includes shipping charges of $19.95. The invoice date is February 5 with payment terms of 3/10 EOM. How much should Katy pay if she pays on March 2?

Question 31

Michaela purchased a bicycle for $435.76 including 4.75% in sales tax. How much was the bicycle before the tax?

Question 32

The sales tax in Xavier's area is 4.85%. He purchased a $2,345 car which is a taxable sale. How much will he pay in all?

Question 33

John Sweeney purchased car parts and is billed $1,620.58 plus freight charges of $85. The invoice is dated June 19 with payment terms of 2/15, n/ 45. How much should John pay if he pays on July 1?

Question 34

A statement of account lists all of the month's ____________ including the balance on the account, payments made during the month, and any credits issued.

Question 35

The ______________ of each discount in the series discount 10/15/20 is 0.9, 0.85, and 0.8.

Question 36

The list price on a cash register is $734.79. A business customer receives a 15% trade discount. What is the net price?

Question 37

The Broomery is shipping 14 craft kits to a client. The price of each kit is $23.89, and the client receives a 25% trade discount. The shipping type is FOB shipping point at a cost of $35. What is the invoice total?

Question 38

Greta purchases scarves for her clothing store and is billed $1,329.75, plus shipping charges of $56 with terms 3/10, n/30. The invoice is dated August 28. Greta makes a partial payment on September 3 for $925. How much does Greta still owe on the invoice?

Question 39

The _______________ is the price a customer pays after all discounts have been deducted.

Question 40

An invoice amount for $4,090.72 has the terms 2/15, n/30. There are $135 in freight charges included in the invoice. $346.24 in merchandise is returned and the invoice is paid within the discount period. What is the net amount due?

Question 41

Mr. and Mrs. Simon purchased patio furniture for $725.99 and a grill for $189.75. They are charged an additional 4.15% in sales tax and $55 in delivery fees. What is the total cost if the delivery charges are taxable?

Question 43

What format is likely to be used for the numbers calculated in an an Excel spreadsheet for an invoice?

Question 44

An invoice for P&L Manufacturing has the total list price in Cell E13. Write two ways that an 18% trade discount could be calculated in Cell E14.

Question 45

An invoice that totals $4,291.61 includes a $27 non-taxable shipping charge and 5.2% sales tax. The terms of the invoice are 3/15, n/45. If the invoice is paid within the discount period, how much should be paid?

Question 46

ABC Imports purchased $2,319.00 in shipping containers which includes 3.95% in sales tax. The terms are 2/10, n/30 and a taxable shipping charge of $198 is included in the invoice. If the invoice is paid within the discount period, how much should be paid?

Question 47

Use the table to find the net price of an item that lists for $1,290 with a series discount of 20%, 10%, 10%.

Question 48

The sales tax in a particular county is 5.2%. A taxable sale of $1,560 will have how much added in sales tax?