An invoice dated on 5/16/xx received by Jack’s Supply indicated a balance of $7,200. This balance included a freight charge of $400. Terms of the bill were 3/10, 2/30, n/60. Assume Jack pays off the bill on May 25. What amount will he pay?
2007-06-28 08:55:01 · 4 answers · asked by Anonymous in Education & Reference ➔ Homework Help
Invoice was on 5/16 and Jack pays 9 days later. The terms mean that if he pays within (i.e.) 10 days, he get 3% discount. So, since he paid off the bill 9 days later, he will get 3% off. And I'm not sure, but I think the freight charge does not go into the discount so. Jack will pay:
$7,200 - $400 (freight charge) = $6,800
Now, take:
$6,800 x .03 = $204
Now, subtract 6,800-204 = 6596
Now, add $400 to that, and Jack will pay a total of $6,996
2007-06-28 09:12:32 · answer #1 · answered by JJ 4 · 0⤊ 0⤋
What this means is that if the customer pays the balance within the number of days specified, they can deduct the given percent off the net total of the bill. So, for example, if the customer pays the bill within 10 days of receipt, they can deduct 3% from the net total of the bill (expressed either as 3/10 or net 3/10). If the customer pays after 10 days, but within 30 days, they can deduct 2% of the net charges (2/30 or net 2/30). After 30 days, the customer is entitled to no rebate on their bill. Apparently, after 60 days (n/60), Nonny (Short for No name, or A"nony"mous. Hence the name Nonny) the bill collector, and his sordid posse of goons are going to pay Jack a visit with the ostensive mission of collecting the debt and to remind him to pay up faster next time, or their next visit won't be quite as friendly.
Since freight charges are a fixed cost to the shipper, they are not usually considered part of the net charges. So, the shipper must recoup this expense by passing it on to the customer. If Jack pays up by May 25, he has paid within the 10 day period and is entitled to deduct 3% of the net charges on his bill. First he must deduct the shipping charges and then calculate 97% of the net charges (100% - 3% = 97% or 0.97 expressed as a decimal) and then re-add the shipping charges to get his total.
$7,200 - $400 = $6,800
$6,800 x 0.97 = $6,596
$6596 + $400 = $6996
2007-06-28 09:45:47 · answer #2 · answered by MathBioMajor 7 · 0⤊ 0⤋
WHAT!!!!??? I have no idea what you just said
2007-06-28 08:58:50 · answer #3 · answered by Hazel :D 2 · 0⤊ 0⤋
$1,000,000!!!
no i seriously do not get this.
2007-06-28 09:02:24 · answer #4 · answered by Anonymous · 0⤊ 0⤋