Question

Macy of New York sold LeeCo. of Chicago office equipment with a $7,600 list price. Sale terms were 1/10, n/30 FOB New York. Macy agreed to prepay the $20 freight. LeeCo. pays the invoice within the discount period. What does LeeCo. pay Macy?

Answer 1

Answer: LeeCo. pay Macy 7544 dollars

Explanation:

Given that the office equipment was sold at $7,600

And Sale terms were 1/10, n/30 FOB New York. Macy agreed to prepay the $20 freight.

Then,

7600 - 7600(0.01) + 20

= 7600 - 76 + 20

= 7544 dollars

LeeCo. pay Macy $7544

Answer 2

$7544 is the amount paid

Explanation:

In this question, we are asked to calculate the amount Leeco pay Macy given the data in the question.

Firstly, we calculate the Discount amount.

That would be 1% ( from 1/10)

that is 7,600 * 1% = $76

Now, we proceed to subtract this value from cost of office equipment; 7,600 - 76 = $7,524

Afterwards, we can now add the freight charges = $7,524 + 20 = $7544