Question

Compute the cost of not taking the following trade discounts: (Use 365 days in a year. Round the final answers to 2 decimal places.)

a. 2/11, net 50 . Cost of lost discount
b. 2117 , net 50 Cost of lost discount
c. 4/15, net 50 . Cost of lost discount
d. 4/19, net 155 . Cost of lost discount

Answer 1

To compute the cost of not taking trade discounts, we need to know the terms of the trade discount and calculate the difference between the amount payable after the discount and the amount payable without the discount.

Step-by-step explanation:

To compute the cost of not taking trade discounts, we need to calculate the cost of lost discounts. The cost of a lost discount is the difference between the amount payable after the discount and the amount payable without the discount. To calculate this, we need to know the terms of the trade discount.

a. For 2/11, net 50, the trade discount is 2% if paid within 11 days, and the payment is due within 50 days. To calculate the cost of the lost discount, we can find the difference between the amount payable after the discount and the amount payable without the discount.

b. For 2117, net 50, there is no specific trade discount mentioned. Without additional information about the terms of the trade, it is not possible to calculate the cost of the lost discount.

c. For 4/15, net 50, the trade discount is 4% if paid within 15 days, and the payment is due within 50 days. To calculate the cost of the lost discount, we can find the difference between the amount payable after the discount and the amount payable without the discount.

d. For 4/19, net 155, the trade discount is 4% if paid within 19 days, and the payment is due within 155 days. To calculate the cost of the lost discount, we can find the difference between the amount payable after the discount and the amount payable without the discount.