Question

On March 30, Century Link received an invoice dated March 28 from ACME Manufacturing for 62 televisions at a cost of 5100 each. Century received a 9/5/5 chain discount. Shipping terms were FOB shipping point. ACME prepald the \$107 freight Teins were 3/to EOM. When Century received the goods, 2 sets were defective. Century returned these sets to ACME On Abrif, Century sent a 5220 partial payment. Century will pay the balance on May 6 . What is Century's final payment on May 6 ? Assume no taxes: Note: Do not round intermediate calculations. Round your answer to the nearest cent.

Answer 1

To calculate the final payment for Century Link to ACME Manufacturing, we find the initial total for the TVs, apply the chain discount, subtract the cost of the returned defective items, add the prepaid shipping, and deduct the partial payment made.

Step-by-step explanation:

The question involves calculating the final payment due on May 6 by Century Link to ACME Manufacturing for a purchase of televisions. The company received a chain discount and made a partial payment.

To calculate the final payment, we need to consider the invoice amount, discounts, returns, partial payments, and shipping costs.

1. Calculate the original invoice amount for the 62 televisions at $100 each, which totals $6,200.
2. Apply the 9/5/5 chain discount to find the net cost after the discount. This results in a multiplying factor of 0.91 * 0.95 * 0.95 for the discount.
3. Subtract the cost of the defective televisions that were returned.
4. Add the prepaid freight of $107 to the net amount after discounts and returns.
5. Subtract the partial payment of $220 made by Century.
6. The final payment due on May 6 will be the remaining balance after the partial payment.

The steps above detail the calculations needed to determine the final payment without considering any late fees or additional costs as they are not mentioned in the question.