Deck 7: Invoices, Trade Discounts, and Cash Discounts

Question 1

The ____________________ price of merchandise is calculated by subtracting the amount of trade discount from the list price.

Answer 1

net

Question 2

Freight terms, FOB destination indicate that the ____________________ is responsible for the freight charges.

Answer 2

seller

Question 3

Business documents used to keep track of sales and purchases are called ____________________.

Answer 3

invoices

Question 4

Morgan bought the following: 27 Wren Houses @ $12.00, 31 Bluebird Houses @ $21.50, and 17 Bird Feeders @ $19.75. The shipping charges were $68.00. What was the total invoice charge?

A) $2,214.50
B) $1,587.50
C) $1,394.25
D) $1,590.00

Question 5

Find the total for the invoice below: $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Stock \# } & \text { Quantity } & \text { Unit } & \text { Description } & \text { Unit Price } & \text { Total } \\\hline 6729 & 20 & \text { ea. } & 15 ^ { \prime \prime } \text { Monitor } & \$ 349.00 & \\\hline 1259 & 22 & \text { ea. } & \text { Cable } & 14.00 & \\\hline 1152 & 25 & \text { ea. } & \text { SCSI card } & 149.00 & \\\hline & & & & \text { Invoice Subtotal } & \\\hline & & & & \text { Shipping Charges } & \$ 580.00 \\\hline & & & & \text { Invoice Total } & \\\hline\end{array}$$

A) $11,593.00
B) $1,092.00
C) $5,311.00
D) $10,848.00

Question 6

What information does the following term or section of an invoice provide? "Shipped Via"

A) Price for each unit of merchandise
B) Name of freight company handling the shipment
C) Used in quoting shipping charges
D) Total amount of merchandise and all other charges

Question 7

Find the total for the invoice below: $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Stock \# } & \text { Quantity } & \text { Unit } & \text { Description } & \text { Unit Price } & \text { Total } \\\hline 424 & 26 & \text { ea. } & \text { Sm. Shirts } & \$ 21.50 & \\\hline 501 & 23 & \text { ea. } & \text { Md. Shirts } & 20.00 & \\\hline 127 & 19 & \text { ea. } & \text { Lg. Shirts } & 11.50 & \\\hline & & & & \text { Invoice Subtotal } & \\\hline & & & & \text { Shipping Charges } & \$ 54.00 \\\hline & & & & \text { Invoice Total } & \\\hline\end{array}$$

A) $1,291.50
B) $1,237.50
C) $1,222.50
D) $1,070.00

Question 8

The ____________________ period is the time period that the seller allows the buyer to pay an invoice.

Question 9

A discount store purchased some special product at a list price of $ 6,300. If the broker gives a 30.5% trade discount rate, what is the amount of the trade discount?

A) $1,921.50
B) $4,378.50
C) $2,950.00
D) $1,706.00

Question 10

What information does the following term or section of an invoice provide? "Seller's Invoice Number"

A) Date of payment and cash discount
B) Indicates what the merchandise is, including model numbers
C) Total owed on the purchase
D) Seller's record number of the transaction

Question 11

The single equivalent discount is a single trade discount that equates to all the discounts in a(n) ____________________ or ____________________.

Question 12

____________________ dating is when the discount period and the credit period start on the date of the invoice.

Question 13

When ____________________ dating is used, terms of sale begin on the date the goods are received by the buyer.

Question 14

The net price factor, usually written in decimal form, is the ____________________ of the trade discount rate.

Question 15

What information does the following term or section of an invoice provide: "F.O.B. destination"?

A) The buyer pays all transportation charges from the seller's location
B) The seller pays all transportation charges to the buyer's location
C) The freight charges are negotiable
D) The freight charges are not negotiable

Question 16

What is the amount of the trade discount on goods ordered with a list price of $3,650 and a trade discount rate of $$4 \frac { 3 } { 4 } \%$$ to the nearest cent?

A) $1,530.00
B) $1,640.00
C) $173.38
D) $160.25

Question 17

Rave-Up Party Store buys some goods with a list price of $5,900. The supplier extends a $$12 \frac { 1 } { 4 } \%$$ trade discount rate. What is the amount of the trade discount?

A) $2,675.50
B) $3,125.65
C) $1,103.75
D) $722.75

Question 18

The ____________________ period is the time period in which a buyer can take advantage of the cash discount.

Question 19

Trade discounts are reductions from the manufacturer's suggested ____________________ price.

Question 20

What is the amount of the trade discount on merchandise that a vendor can receive with a list price of $7,700 and a trade discount rate of $$20 \frac { 1 } { 2 } \%$$ ?

A) $1,275.50
B) $5,760.00
C) $1,578.50
D) $2,500.25

Question 21

Bob's Motorcycle shop buys some seats and handle bars with a list price of $5,020. The supplier extends a 32% trade discount rate. What is the net price?

A) $3,413.60
B) $1.606.40
C) $1,900.10
D) $3,200.60

Question 22

What was the trade discount rate if goods with a list price of $10,600 were sold at a net price of $8,250? (Round to the nearest tenth)

A) 79.1%
B) 22.2%
C) 36.4%
D) 28.3%

Question 23

Flora's Flowers buys some pots and vases with a list price of $26,700. If the supplier offers a trade discount that yields a net price of $12,955, what is the trade discount rate to the nearest tenth of a percent?

A) 45.1%
B) 49.5%
C) 59.6%
D) 51.5%

Question 24

Dents and Dings Auto Body buys paint with a list price of $29,000. If the supplier extends trade discounts of 30/35/20, what is the trade discount amount?

A) $10,566
B) $18,444
C) $17,600
D) $13,250

Question 25

What was the trade discount rate if items sold with a list price of $7,550 were sold at a net price of $5,220? (Round to the nearest whole percent)

A) 31%
B) 65%
C) 35%
D) 58%

Question 26

All-Ways Green Gardens buys plants with a list price of $15,000. If the supplier extends trade discounts of 20/15/1, what is the trade discount amount?

A) $1,025.15
B) $4,902.00
C) $1,150.00
D) $3,750.25

Question 27

Calculate the trade discount amount of goods with a list price of $29,000 less trade discounts of $$40 \frac { 1 } { 2 } / 20 \frac { 1 } { 4 } / 5$$ .

A) $7,752.25
B) $2,280.10
C) $13,072.82
D) $15,927.18

Question 28

Find the net price for an order of gift items with a list price $24,000 less trade discounts of 30/25/15. Use the net price, complement method.

A) $18,400.00
B) $13,209.40
C) $7,200.00
D) $10,710.00

Question 29

Calculate the net price of merchandise listing for $5,900 less a trade discount rate of 45%.

A) $2,655
B) $3,760
C) $3,245
D) $2,065

Question 30

Find the net price for an order of television sets with a list price of $16,000, less trade discounts of 35/20/15. Use the net price, complement method for your answer.

A) $11,249
B) $7,072
C) $4,821
D) $8,928

Question 31

An electrical supply store bought copper wire with a list price of $26,200. The wholesaler extended a trade discount which made the net price $15,206. What is the trade discount rate to the nearest whole percent?

A) 32%
B) 58%
C) 42%
D) 49%

Question 32

Find the net price for an order of tires with a list price of $15,000, less trade discounts of 30/25/10. Use the net price, complement method.

A) $5,250.00
B) $9.750.00
C) $7,912.50
D) $7,087.50

Question 33

The Canine Shop orders special powders and oils with a list price of $1,500. The supplier extends a 4% trade discount rate. What is the net price?

A) $1,400
B) $84
C) $1,440
D) $60

Question 34

Find the net price for a three piece set of coffee tables with a list price of $2,500, less trade discounts of 25/20/15. Use the net price, complement method.

A) $1,225
B) $1,275
C) $1,500
D) $1,000

Question 35

A flower shop buys roses with a list price of $1,500. If the wholesaler offers trade discounts of $$30 / 21 / 10 \frac { 3 } { 4 }$$ , find the trade discount amount to the nearest penny.

A) $759.67
B) $1,200.01
C) $912.25
D) $480.02

Question 36

Easy Patterns Fabric buys merchandise with a list price of $9,500. Use the net price, complement method to find the net price if the wholesaler offers trade discounts of 25/10/5. (Round to the nearest penny)

A) $6,900.35
B) $5,622.03
C) $4,700.05
D) $6,091.88

Question 37

Calculate the trade discount amount of merchandise with a list price of $5,000 less trade discounts of 40/20/15.

A) $2,960
B) $2,040
C) $3,750
D) $1,250

Question 38

Calculate the net price of goods listing for $9,900 less a trade discount rate of $$2 \frac { 3 } { 8 } \%$$ to the nearest cent.

A) $9,664.87
B) $235.13
C) $725.68
D) $9,075.25

Question 39

Anselmo's Engineering buys circuit boards with a list price of $32,000. If the supplier extends trade discounts of 42/32/12, what is the trade discount amount?

A) $18,415.00
B) $15,170.00
C) $20,893.70
D) $16,835.25

Question 40

McClan Paving buys asphalt with a list price of $17,000. If the supplier extends trade discounts of 42/22/11, find the net price using the complement method.

A) $3,100.25
B) $6,844.20
C) $4,976.37
D) $,5900.25

Question 41

A second hand furniture store buys sofas with a list price of $9,500. If the wholesaler offers trade discounts of 10/20/30, find the single equivalent discount.

A) 0.442
B) 0.496
C) 0.600
D) 0.320

Question 42

Backyard World buys plastic pools from a supplier with an invoice amount of $19,500. The terms of the sale are 5/10, n/30. If the retailer sends a partial payment of $8,700 on the discount date, what is the net amount still due?

A) $10,342.11
B) $10,365.00
C) $10,800.00
D) $9,135.00

Question 43

Hard Blues Music buys CDs with a list price of $32,000. If the wholesaler offers trade discounts of 3/2/1, find the net price factor.

A) 0.35005
B) 0.65021
C) 0.94109
D) 0.52484

Question 44

A farm feed supply firm buys feed with an invoice date of April 19. The terms of sale are 3/15, n/30. Find the discount date.

A) April 22
B) June 18
C) April 29
D) May 4

Question 45

A small retailer buys goods from a vendor with an invoice amount of $9,100. The terms of the sale are 2/10, n/30. What is the net amount due on the goods if the bill is paid by the 10th day?

A) $182
B) $8,918
C) $8,640
D) $910

Question 46

Lulu's Bath Works purchases towels with an invoice price of $12,456, and terms of sale of 5/10, n/30. What is the net amount due on the order if a partial payment of $2,500 is made on the 10th day?

A) $9,824.42
B) $9,956.00
C) $10,155.00
D) $2,631.59

Question 47

Conan purchases chocolate having an invoice price of $23,700. The terms of sale are 20/11, n/30. What is the cash discount if the bill is paid by the 10th day?

A) $4,740
B) $1,375
C) $11,644
D) $4,310

Question 48

Find the net date for an invoice dated August 7, with terms 4/20, 50 Extra.

A) August 27
B) September 16
C) October 16
D) November 5

Question 49

Vivian's Linens purchases towels with an invoice price of $22,700, and terms of sale of 4/10, n/30. What is the net amount due on the order if a partial payment of $10,300 is made on the 10th day?

A) $11,970.83
B) $12,365.47
C) $10,155.00
D) $11,988.00

Question 50

Amado purchased the following: 15 mouse traps @ $1.25 per item, 18 light bulbs @ $3.50 per item and 3 Bird Feeders @ $19.75. The shipping charges were $52.00. What was the total invoice charge?

A) $141.00
B) $193.00
C) $24.50
D) $22.96

Question 51

Kiddie Kites buys Japanese kite kits with a list price of $6,500. If the supplier offers trade discounts of 30/15/15, find the trade discount amount to the nearest cent.

A) $4,200.25
B) $1,207.50
C) $3,212.63
D) $2,295.87

Question 52

A discount clothing store buys shirts and slacks with a list price of $12,750. If the wholesaler offers trade discounts of 15/25/15, find the single equivalent discount.

A) 0.444375
B) 0.357896
C) 0.458125
D) 0.352852

Question 53

Modern Video buys Blu-ray discs with an invoice price of $30,200, and terms of sale of 2/15, n/30. What is the net amount due on the order if the bill is paid by the 10th day?

A) $20,200
B) $29,088
C) $19,180
D) $29,596

Question 54

Find the trade discount amount for an order of merchandise with a list price of $25,000 less trade discounts of 30/25/10.

A) $11,812.50
B) $187.50
C) $13,187.50
D) $12,418.25

Question 55

Quick Depot buys tools from a supplier with an invoice amount of $19,700. The terms of the sale are 15/15, n/30. What is the net amount due on the order if the bill is paid by the 15th day?

A) $18,245
B) $19,700
C) $16,745
D) $17,760

Question 56

Atlas Hardware buys power tools with a list price of $29,500. If the supplier offers trade discounts of 10/20/5, find the trade discount amount. Use the single equivalent discount for your answer.

A) $9,322
B) $13,100
C) $17,752
D) $5,700

Question 57

Find the trade discount amount for an order of paper supplies with a list price of $25,000, less trade discounts of 30/20/10. Use the single equivalent discount for your answer.

A) $16,120
B) $11,250
C) $12,400
D) $13,750

Question 58

Standard Software purchases programs from Microsoft with an invoice price of $25,900 and terms of sale of 5/15, n/30. What is the net amount due on the order if a partial payment of $6,000 is made on the 15th day?

A) $24,605.00
B) $20,200.00
C) $20,720.00
D) $19,584.21

Question 59

The local zoo buys hay from a supplier with an invoice amount of $17,220. The terms of the sale are 5/22, n/30. What is the net amount due on the order if the bill is paid by the 22nd day?

A) $17,220
B) $16,359
C) $861
D) $4,760

Question 60

A craft shop buys stuffed animals with a list price of $8,000. If the wholesaler offers trade discounts of 25/25/25, find the net price factor.

A) 0.45375
B) 0.21125
C) 0.78875
D) 0.42188

Question 61

What word is represented by the abbreviation: pr

Question 62

Hyabuza Japanese Restaurant received an invoice, dated February 20, 2011, for supplies they ordered that had a list price of $2,700 from a supplier that offered a series discount of 15/8/4 and carried terms of 3/10, 1/15, n/30. How much should the restaurant remit if the bill is to be paid in full on March 1, 2011?

A) $1,966.13
B) $2,006.67
C) $2,700.00
D) $2,026.94

Question 63

Gadgets Inc., received an invoice from a supplier for raw materials that had a list price of $12,600.00. The supplier offered a series discount of 30/20/10 and terms of 2/10, n/30 ROG and F.O.B. destination. The supplier pre-paid the freight of $350.00. The invoice was dated June 10 and the goods were received on June 30. If Gadgets remitted full payment on July 10, what was the amount they paid?

A) $6,566.39
B) $5,880.39
C) $6,223.39
D) $6,573.39

Question 64

What word is represented by the abbreviation: in.

Question 65

A discount store purchased some special product at a list price of $1,600. If the broker gives a 20.25% trade discount, what is the amount of the trade discount?

A) $1,276.00
B) $324.00
C) $950.00
D) $1,706.00

Question 66

Chuck's Chops, an up-scale steak house, received an invoice for 800 pounds of baking potatoes with a cost of $.85 per pound. The terms were $$2 \frac { 1 } { 2 } / 10$$ , n/30. Chuck was unable to pay the bill in full within the discount period but was able to remit a partial payment of $425.00 within the discount period. How much credit did Chuck receive for his payment?

A) $425.00
B) $435.90
C) $429.25
D) None

Question 67

Dante's Wholesaler buys some goods with a list price of $4,400. The supplier extends a 10.25% trade discount to a customer. What is the amount of the trade discount?

A) $535.00
B) $3,949.00
C) $451.00
D) $722.25

Question 68

Awesome Software purchases programs from Apple Inc., with an invoice price of $14,900 and terms of sale of 3/15, n/30. What is the net amount due on the order if a partial payment of $2,000 is made on the 15th day?

A) $12,900.00
B) $12,838.14
C) $2,061.85
D) $1,200.00

Question 69

Tamara Muldoon received an invoice dated October 25th with terms of 2/10, n/30 EOM. If Tamara wishes to pay the bill on the last day of the discount period, what date would she pay the invoice?

A) December 10
B) November 30
C) November 4
D) November 10

Question 70

The Photo Express buys cameras and film with an invoice date of May 17. If the terms of sale are 2/15, n/45, find the net date.

A) June 1
B) July 18
C) July 16
D) July 1

Question 71

What word is represented by the abbreviation: cwt

Question 72

A home accessories store buys lamps with a net price of $22,600. The terms of sale are 4/15, n/30. If a partial payment of $10,300 is sent to the wholesaler on the discount date, what is the net amount still due?

A) $21,696.00
B) $11,870.83
C) $12,712.00
D) $11,808.00

Question 73

JoAnne's Fabric buys merchandise with a list price of $12,400. Use the complement method to find the net price if the wholesaler offers trade discounts of 15/20/5. (Round to the nearest penny)

A) $10,540.00
B) $8,010.40
C) $4,389.60
D) $6,092.35

Question 74

A new business receives an invoice for merchandise on August 9. The terms of the sale are 12/10, n/30. If the manager elects to take the cash discount, what is the discount date?

A) August 19
B) August 18
C) August 21
D) August 17

Question 75

Get-Down Electronics buys MP3 players with an invoice date of June 29 and terms of sale of 4/20 EOM. Calculate the discount date.

A) June 29
B) July 18
C) August 20
D) August 30

Question 76

Classic Furniture purchases dining room sets with an invoice date of September 27, and terms of sale of 3/10, n/60. What is the net date?

A) October 17
B) October 22
C) November 26
D) November 2

Question 77

A manufacturer of computer printers offers a series discount of 20/10/5. A second manufacturer of printers offers a series discount of 25/12/10. Assuming all other aspects of the products are the same, which manufacturer would offer the best discount?

A) The 20/10/5 discount because it results in a final discount of 68.4%
B) The 20/10/5 discount because it results in a final discount of 31.6%
C) The 25/12/10 discount because it results in a final discount of 40.6%
D) The 25/12/10 discount because it results in a final discount of 59.4%

Question 78

Screws and Bolts Outlet buys a shipment of screws with a list price of $2,400. If the supplier extends trade discounts of 20/25/10, what is the trade discount amount?

A) $480
B) $1,920
C) $1,104
D) $1,440

Question 79

Luggage World buys briefcases with an invoice date of September 28. The terms of sale are 2/10 EOM. What is the net date for this invoice?

A) October 10
B) October 30
C) November 10
D) November 30

Question 80

A toy store buys Wiis from Nintendo with an invoice date of April 14. The terms of sale are 3/10 ROG. What is the net date if the shipment arrives June 12?

A) April 24
B) May 14
C) June 22
D) July 12