Asked by Irene Godinez on Jun 18, 2024
Verified
Compute the discount date, the due date, the amount of discount and amount of the remittance if the required remittance is paid within the discount period.Ray Marshall is a purchasing agent for East Coast Electric and tries to take advantage of all cash discounts on major purchases. On July 7 (invoice date) he purchased parts for service vehicles. The parts cost $3,824.77, but $214.40 worth were returned because they were incorrect. The terms from the supplier were 1/10, net 25.
Purchasing Agent
An individual or entity responsible for buying goods and services for a company or organization.
Cash Discounts
A reduction in the invoice price offered by sellers to buyers as an incentive for early payment.
Discount Date
The specified date when a discount is available, often used in the context of payment terms to encourage early payment.
- Absorb the idea of cash discounts and how they influence invoice calculations.
- Estimate the cash discount provided for early remittance.
- Ascertain the discounted amounts and due deadlines for invoices following the specified criteria.
Verified Answer
SH
Learning Objectives
- Absorb the idea of cash discounts and how they influence invoice calculations.
- Estimate the cash discount provided for early remittance.
- Ascertain the discounted amounts and due deadlines for invoices following the specified criteria.