Exam
Name___________________________________
SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question.
Provide an appropriate response.
1)
Give two reasons why cash discounts are offered by sellers.
1)
2)
Which is the better series discount, 10/20 or 10/10/10? Explain.
2)
3)
Does a customer earn a cash discount with terms 5/15, net 60 on an invoice dated April 27
that is paid on May 13?
3)
4)
Explain what is meant by partial payment. Why would a company accept a partial
payment? Why would a customer make a partial payment?
4)
5)
Describe in your own words why receipt–of–goods dating (ROG) is offered to customers.
Use an example.
5)
6)
Explain the difference between a single trade discount and a series trade discounts. Give an
example of each.
6)
7)
Describe the difference between a trade discount and a cash discount.
7)
8)
Identify and explain four reasons that might cause series trade discounts to change.
8)
9)
Explain in your own words what a complement (with respect to 1 or 100%) is. Using
complements, explain how to find the net cost equivalent of a series discount.
9)
10)
Explain the meaning of a cash discount which employs the ordinary dating method using
2/10, n/30 as an example.
10)
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
Find the net cost equivalent and the percent form of the single discount equivalent for the following series discount.
11)
30/15
11)
A)
0.405; 59.5%
B)
0.45; 55%
C)
0.595; 40.5%
D)
0.55; 45%
Compute the extension totals and the invoice total.
12)
20 bx. Model Glue $22.56 bx.
74 Model Cars (assorted) $18.80 ea.
2qt. Red Model Paint $7.00 qt.
12)
A)
$20.00
$74.00
$2.00
$96.00
B)
$22.56
$18.80
$7.00
$48.36
C)
$451.20
$1391.20
$9.00
$1851.40
D)
$451.20
$1391.20
$14.00
$1856.40
100%. Explanations will vary.
Solve for the amount of discount and amount due.
13)
Invoice amt: $502.45
Invoice date: Nov 10
Terms: 2/13 ROG
Goods rec’d: Dec 4
Date paid: Jan 10
13)
A)
Amount of discount: $0; amount due: $502.45
B)
Amount of discount: $9.85; amount due: $491.45
C)
Amount of discount: $10.05; amount due: $492.40
D)
Amount of discount: $65.32; amount due: $437.13
Solve the problem. Round to the nearest cent.
14)
An invoice is dated Aug 28 AS OF Sep 1 with terms of 4/10, n/30. Find the final discount date and
the net payment date.
14)
A)
Final discount date: Sept 10
Net payment date: Sept 30
B)
Final discount date: Sept 12
Net payment date: Oct 1
C)
Final discount date: Sept 7
Net payment date: Sept 27
D)
Final discount date: Sept 11
Net payment date: Oct 1
Find the net cost. Round to the nearest cent.
15)
$101.90 less 20/20/20
15)
A)
$40.76
B)
$61.14
C)
$52.17
D)
$41.90
What does the abbreviation stand for?
16)
pr.
16)
A)
printed
B)
price
C)
pair
D)
per
Find the list price. Round to the nearest cent.
17)
Net cost $1165; trade discount 20/40
17)
A)
$559.20
B)
$2912.50
C)
$466.00
D)
$2427.08
18)
Net cost $538; trade discount 5/5
18)
A)
$597.78
B)
$596.12
C)
$485.55
D)
$484.20
Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
19)
Invoice date: Nov 28
Terms: 1/8– 20x
19)
A)
Discount date: Dec 26; net payment date: Jan 15
B)
Discount date: Dec 2; net payment date: Dec 22
C)
Discount date: Dec 18; net payment date: Jan 7
D)
Discount date: Dec 25; net payment date: Jan 15
Find the list price. Round to the nearest cent.
20)
Net cost $879; trade discount 5/10/15
20)
A)
$615.30
B)
$1255.71
C)
$638.81
D)
$1209.49
Solve the problem.
21)
On a new oak bookcase with a list price of $882, a series discount of 15/5/5 is offered to wholesalers
while a series discount of 15/15 is offered to retailers.
a) What is the wholesalers price?
b) What is the retailer’s price?
21)
A)
(a) $676.60; (b) $244.76
B)
(a) $205.40; (b) $244.76
C)
(a) $661.50; (b) $220.50
D)
(a) $676.60; (b) $637.25
Find the final discount date and the net payment date.
22)
Invoice date: August 23
Terms: 5/15, net 30
22)
A)
Final discount: Aug 28
Payment due: Sept 7
B)
Final discount: Sept 7
Payment due: Sept 22
C)
Final discount: Sept 6
Payment due: Sept 21
D)
Final discount: Sept 22
Payment due: Sept 7
Solve the problem. Round to the nearest cent.
23)
Central Airlines offers a series discount of 15/10/5 for frequent flyers. If a round–trip airline ticket is
$744, what is the net cost after the series discount?
23)
A)
$223.20
B)
$203.30
C)
$540.70
D)
$520.80
Solve the problem.
24)
An invoice is received from Westminster Office Machines for $497.10 with terms of 4/13 and dated
Feb 25 AS OF Mar 1. If a partial payment of $245 is made on Mar 23, find the balance due on the
invoice.
24)
A)
$232.22
B)
$255.21
C)
$252.10
D)
$241.89
Solve for the amount of discount and amount due.
25)
Invoice amt: $872
Invoice date: Oct 10
Terms: 5/10, 2/20, n/30
Date paid: Oct 25
25)
A)
Amount of discount: $43.60; amount due: $828.40
B)
Amount of discount: $87.20; amount due: $784.80
C)
Amount of discount: $0; amount due: $872
D)
Amount of discount: $17.44; amount due: $854.56
Solve the problem.
26)
An invoice received from Midtown Office Supply Distributors is dated Mar 4 with terms of 1/6
prox. Find the final date on which the cash discount may be taken and the net payment date.
26)
A)
Final discount date: Mar 10; net payment date: Apr 3
B)
Final discount date: Apr 6; net payment date: May 1
C)
Final discount date: Apr 6; net payment date: Apr 26
D)
Final discount date: Mar 10; net payment date: Mar 31
Find the final discount date and the net payment date.
27)
Invoice date: June 14
As of: June 18
Terms: 6/20, n/60
27)
A)
Final discount: Aug 17
Payment due: July 8
B)
Final discount: July 9
Payment due: Aug 18
C)
Final discount: July 4
Payment due: Aug 13
D)
Final discount: July 8
Payment due: Aug 17
D
Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
28)
Invoice date: Mar 13
Terms: 1/10 – 50x
28)
A)
Discount date: May 12; net payment date: Jun 1
B)
Discount date: May 2; net payment date: May 22
C)
Discount date: Apr 2; net payment date: Apr 22
D)
Discount date: May 13; net payment date: Jun 3
A
C
Solve for the amount of discount and amount due.
29)
Invoice amt: $1160
Invoice date: May 20
Terms: 5/10, n/60
Shipping/Insurance: $32.52
Date paid: May 28
29)
A)
Amount of discount: $58.00; amount due: $1134.52
B)
Amount of discount: $0; amount due: $1192.52
C)
Amount of discount: $59.63; amount due: $1132.89
D)
Amount of discount: $58.00; amount due: $1069.48
Find the net cost. Round to the nearest cent.
30)
$537 less 25/20
30)
A)
$492.00
B)
$322.20
C)
$295.35
D)
$671.25
Solve for the amount of discount and amount due.
31)
Invoice amt: $4040
Invoice date: Mar 10
Terms: 3/10, n/30
Date paid: Mar 17
31)
A)
Amount of discount: $40.40; amount due: $3999.60
B)
Amount of discount: $404.00; amount due: $3636.00
C)
Amount of discount: $121.20; amount due: $3918.80
D)
Amount of discount: $0; amount due: $4040
32)
Invoice amt: $293.41
Invoice date: Sept 13
Terms: 3/11 EOM
Goods rec’d: Sept 16
Date paid: Oct 9
32)
A)
Amount of discount: $32.28; amount due: $261.13
B)
Amount of discount: $8.50; amount due: $282.41
C)
Amount of discount: $0; amount due: $293.41
D)
Amount of discount: $8.80; amount due: $284.61
Solve the problem. Round to the nearest cent.
33)
The store where Anna–Marie is a salesperson offers a series discount of 40/30 on any clothes
bought at the store. What is the cost of a $55 sweater after discount?
33)
A)
$31.90
B)
$16.50
C)
$23.10
D)
$38.50
Solve the problem.
34)
An invoice received from Wharf Seafood Supply is dated Jan 1. The list price of the goods is $3671,
with allowed series discounts of 15/10/10. If the cash terms are 4/15 ROG, and the goods were
received Jan 15, find the amount to pay in full on Jan 28.
34)
A)
$3671
B)
$2426.38
C)
$2019.05
D)
$2527.48
Solve the problem. Round to the nearest cent.
35)
Tech Support offers trade discounts of 10/20 and terms of 4/10, n/30 on its tool cases. Assuming a
service department earns the cash discount, find the net cost of a tool case list–priced at $337.
35)
A)
$218.38
B)
$232.93
C)
$242.64
D)
$226.46
Solve for the amount of discount and amount due.
36)
Invoice amt: $571.14
Invoice date: Mar 5
Terms: 1/10 – 20x
Goods rec’d: Mar 7
Date paid: Apr 4
36)
A)
Amount of discount: $5.71; amount due; $565.43
B)
Amount of discount: $5.61; amount due: $560.14
C)
Amount of discount: $57.11; amount due: $514.03
D)
Amount of discount: $0; amount due: $571.14
Solve the problem.
37)
A pool table with a list price of $540 is sold by a wholesaler at a net cost of $356.40. Find the single
trade discount rate being offered. Round to the nearest tenth of a percent if necessary.
37)
A)
51.5%
B)
34%
C)
66%
D)
50.5%
Find the list price. Round to the nearest cent.
38)
Net cost $191; trade discount 15/15/25/10
38)
A)
$391.64
B)
$545.71
C)
$66.85
D)
$93.15
Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
39)
Invoice date: Aug 19
Terms: 2/15 ROG
Goods received: Oct 2
39)
A)
Discount date: Sept 15; net payment date: Oct 15
B)
Discount date: Oct 15; net payment date: Nov 7
C)
Discount date: Oct 17; net payment date: Nov 6
D)
Discount date: Oct 17; net payment date: Nov 7
Solve the problem.
40)
Lotoff’s Fashion Corner received a new line of paisley ties that had a net cost of $36 each. If they
were given a series discount of 10/25, find the list price.
40)
A)
$53.33
B)
$23.40
C)
$55.38
D)
$24.30
Find the list price. Round to the nearest cent.
41)
Net cost $561; trade discount 40/16 2
3
41)
A)
$280.50
B)
$1294.71
C)
$243.08
D)
$1122.00
Solve the problem. Round to the nearest cent.
42)
A sewing supply store purchases thread at a list price of $140 per 100 spools. The supplier offers a
trade discount of 10/33 1
3. Find the net cost of 150 spools of thread.
42)
A)
$0.56
B)
$126.00
C)
$140.00
D)
$84.00
Solve the problem.
43)
An invoice received from Royal Exporters totaled $511.50, was dated Oct 13, and offered terms of
4/13 ROG. The shipment was received Nov 27. If the invoice was paid on Dec 14, find the amount
due.
43)
A)
$491.04
B)
$511.50
C)
$0
D)
$20.46
Solve the problem. Round to the nearest cent.
44)
The list price of 2 dozen blank cassettes is $60. Find the dealer’s cost per cassette if a series discount
of 5/15 is offered.
44)
A)
$0.48
B)
$2.00
C)
$2.02
D)
$48.45
Find the net cost. Round to the nearest cent.
45)
$765 less 10/20
45)
A)
$550.80
B)
$735.00
C)
$535.50
D)
$382.50
Solve for the amount of discount and amount due.
46)
Invoice amt: $1819
Invoice date: Nov 27
Terms: 4/15, n/40
Goods returned: $87
Date paid: Dec 12
46)
A)
Amount of discount: $72.76; amount due: $1659.24
B)
Amount of discount: $72.76; amount due: $1833.24
C)
Amount of discount: $0; amount due: $1732.00
D)
Amount of discount: $69.28; amount due: $1662.72
47)
Invoice amt: $204.27
Invoice date: Sept 17
Terms: 2/9 EOM
Goods rec’d: Sept 20
Date paid: Nov 7
47)
A)
Amount of discount: $4.09; amount due: $200.18
B)
Amount of discount: $3.89; amount due: $193.27
C)
Amount of discount: $18.38; amount due: $185.89
D)
Amount of discount: $0; amount due: $204.27
Find the net cost. Round to the nearest cent.
48)
$1852 less 10/10/20/30
48)
A)
$926.00
B)
$1782.00
C)
$555.60
D)
$840.07
Solve the problem. Round to the nearest cent.
49)
An invoice for computer parts totals $730, including $4.02 for shipping and insurance. The terms
are 5/10, n/45. If this invoice is paid within 10 days, how much is owed?
49)
A)
$653.38
B)
$693.70
C)
$725.98
D)
$693.50
Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
50)
Invoice date: Nov 12
Terms: 1/13 ROG
Goods received: Dec 14
50)
A)
Discount date: Dec 27; net payment date: Jan 16
B)
Discount date: Jan 12; net payment date: Jan 30
C)
Discount date: Dec 13; net payment date: Jan 13
D)
Discount date: Dec 27; net payment date: Jan 17
A
Explanation:
Solve for the amount of discount and amount due.
51)
Invoice amt: $4057
Invoice date: July 6
Terms: 5/10, n/30
Date paid: July 26
51)
A)
Amount of discount: $405.70; amount due: $3651.30
B)
Amount of discount: $202.85; amount due: $3854.15
C)
Amount of discount: $40.57; amount due: $4016.43
D)
Amount of discount: $0; amount due: $4057
D
Explanation:
What does the abbreviation stand for?
52)
cwt.
52)
A)
count
B)
cost by weight
C)
per hundred weight
D)
count weight
C
Explanation:
B
Explanation: