Question

~PLEASE HELP ASAP OFFERING 20 POINTS PLEASE ANSWER MORE THAN 1 QUESTION~

The invoice date is August 1st. The terms are 5/10 EOM. What is the last day to take the discount?

A) September 10

B) September 11

C) August 11

D) August 10

Question 2
The terms are 4/10, n/30. The net price is $919.60. What is the cash price using the complement method?

A) $563.90

B) $673.00

C) $88.82

D) $987.09

Answer 1

Question 1.) 5/10 = 0.05

Invoice date: August 1

Terms: 5/10 (EOM)

Day of Last Discount: 5%/100 = 1/20

Answer: 5% , September 10 = (0.05)

Question 2.). Terms of Sale:

4/10

% Cash Discount: 4

Days to take Discount: 10

n/30

Net Amount due in: N

Days to Pay Net Amount: 30

Complement Method:

Terms = 4/10; n/30

Net Price = 919.60

Answer: Cash Price: $882.82

Complement Method: Method of computing the net price directly, using the complement of the trade discount rate.

Complement Rate: A rate equal to 100% minus the discount rate; used with the complement method in determining trade or cash discounts.

Hope that helps!!!! : )