Question

From the following facts calculate what Eva Main paid Jade Co. for the purchase of a dining room set. Sale terms are 4​/10, ​n/30 Sales ticket price before​ tax, $ 12 comma 000​, dated April 5. b. Sales​ tax, 10​%. c. Returned one defective chair for credit of $ 500 on April 8. d. Paid bill on April 13.

Answer 1

$12,190

Step-by-step explanation:

We first group the information.

Dining Room set cost = $12,000

Tax at 10%

Terms as 4% discount if paid in 10 days and full payment in 30 days.

Adjustments :

Payment = $12000

Tax = $1200

Refund = $500

Tax refund for chair returned = $50 (500*0.1)

Discount received for settlement = (12000 - 500) * 0.04 = $460

Total payable @ April 13 = 12000 + 1200 - 500 - 50 - 460 = $12,190

Hope that helps.