104k views
3 votes
a wholesaler ordered 14 bolts of drapery fabric at $5.50 per yard. each bolt had 60 yards. the order qualified for a quantity discount of 2%. the merchandise was shipped FOB factory; freight charges of $21.80 were prepaid. the invoice was dated march 18 with terms of 2/15, n/30. how much should be remitted if the invoice is paid on march 29?

User Dingle
by
7.7k points

1 Answer

1 vote

If the invoice is paid on March 29, the amount that should be remitted is $4,641.80.

To calculate the amount that should be remitted for the invoice paid on March 29, we need to consider several factors:

1. Calculate the total cost of the fabric:
- The wholesaler ordered 14 bolts of drapery fabric at $5.50 per yard.
- Each bolt contains 60 yards.
- Therefore, the total cost of the fabric is 14 bolts * 60 yards * $5.50 per yard.

2. Apply the quantity discount:
- The order qualifies for a 2% discount.
- Calculate the discount by multiplying the total cost of the fabric by 2%.

3. Add the freight charges:
- The freight charges were $21.80 and were prepaid.

4. Determine the payment terms:
- The invoice is dated March 18.
- The terms are 2/15, n/30, which means the customer can take a 2% discount if paid within 15 days, otherwise, the full amount is due within 30 days.

Now, let's perform the calculations:

1. Total cost of the fabric:
- 14 bolts * 60 yards * $5.50 = $4,620

2. Apply the quantity discount:
- 2% of $4,620 = $92.40

3. Add the freight charges:
- $4,620 + $21.80 = $4,641.80

4. Determine the payment terms:
- The invoice was dated March 18.
- The payment is due within 30 days, so the payment is still within the terms.

User Nemostyle
by
7.7k points