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Sample Problems: Cash Discount

The document contains 4 sample accounting problems related to cash discounts and payment terms: 1) A problem calculating the net payment amount for an invoice offering a 20% trade discount and 4% cash discount if paid within 15 days. 2) A problem calculating cash discount, net payment amount within discount period, last day of discount period, and last day of credit period for an invoice with terms of 3/20, n/45. 3) A problem calculating the payment amount if paid 25 days after an invoice with terms of 3/10, 1/30, n/60. 4) A problem calculating the last day of the discount period and credit period for an invoice dated July 5 with terms

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Mady Punsalan
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316 views5 pages

Sample Problems: Cash Discount

The document contains 4 sample accounting problems related to cash discounts and payment terms: 1) A problem calculating the net payment amount for an invoice offering a 20% trade discount and 4% cash discount if paid within 15 days. 2) A problem calculating cash discount, net payment amount within discount period, last day of discount period, and last day of credit period for an invoice with terms of 3/20, n/45. 3) A problem calculating the payment amount if paid 25 days after an invoice with terms of 3/10, 1/30, n/60. 4) A problem calculating the last day of the discount period and credit period for an invoice dated July 5 with terms

Uploaded by

Mady Punsalan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Sample Problems

CASH DISCOUNT
You buy goods with a list price of K800. You return
goods that are defective, having a list price of
K50. You are entitled to a trade discount of 20%.
The seller paid K20 in freight on your behalf and
added the amount to the invoice. You are offered
a 4% cash discount if you pay the invoice within
15 days. What is the net amount you should pay
the supplier if you make payment within the
discount period?
You purchase goods with a net price of $240. The
invoice is dated October 7 with terms of 3/20,
n/45. Determine (a) the cash discount, (b) the net
amount due if paid within the discount period, (c)
the last day of the discount period, and (d) the
last day of the credit period.
An invoice for $75.20 has terms of 3/10, 1/30,
n/60. If you make payment 25 days after the
invoice date, what amount should you pay?
You purchase goods on an invoice dated July 5
with terms of 4/15, n/45 ROG. If you receive the
goods on July 23, calculate (a) the last day of the
discount period, and (b) the last day of the credit
period.

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