Please Answer The Following Questions Showing All Of Your Wo

Please Answer The Following Questionsshowing All Of Your Workplease C

Please answer the following questions showing all of your work. For each question, carefully perform all calculations, show your work, and circle your answers where indicated. Below are four complex accounting and pricing problems involving trade discounts, invoice calculations, and vendor comparisons, designed to assess your understanding of business mathematics, trade terms, invoice processing, and cost analysis.

Paper For Above instruction

Question 1: Calculation of Payment for a Bulk Purchase with Multiple Trade Discounts

A buyer purchased 75 ginger jar lamps at a list price of $40 each. The trade discounts were 30%, 20%, and 5%, applied successively. The terms were 2/10, net 30. The lamps were shipped and billed on October 18, received on October 22, and paid on October 31. What amount was paid?

Question 2: Invoice Pricing with Seasonal Terms and Delivery Date Considerations

On June 10, the buyer for Charm Stores placed an order for 24 dozen turtleneck tops costing $81 per dozen, with terms of 8/10 EOM, ROG, FOB Store. The shipment was received on October 26, and payment was made on November 10. What amount should be remitted?

Question 3: Vendor Invoice Payment Calculation Including Shipping and Terms

An invoice for $2,300 has terms of 2/10–30X, net 60, FOB factory. The vendor prepaid $34 for shipping charges. The invoice date is August 29, and payment was made on September 24. How much should the vendor have received?

Question 4: Comparison of Discounted Costs for Different Patterns and Vendors

Jean’s Fashion ordered 12 dozen silk scarves costing $120 per dozen with freight charges of $18. The terms are 2/10–30X, n/60 EOM, FOB store, with anticipation permitted. The invoice date is June 10, and the payment is due in July.

Annie’s on the Lake evaluates three sterling flatware patterns from two vendors:

• Pattern A: List price $1,400 per set, 15 sets.
• Pattern B: List price $1,600 per set, 15 sets.
• Pattern C: List price $1,800 per set, 15 sets.

Vendor A: Trade discounts of 40% then 25%, no quantity discounts, cash 2/10, n/30. FOB factory, shipping estimated at 0.5% of the final cost.

Vendor B: No trade discount from list price, then 20% and 5%, with volume-based discounts: 1% over $10,000, 1.5% over $15,000, and 2% over $20,000. Cash discount of 2/10–60X, FOB store.

Determine which vendor provides the better deal for each pattern by calculating the final net cost, considering all discounts, shipping, and terms.

Solution to the Above Questions

Question 1: Calculation of Payment for a Bulk Purchase with Multiple Trade Discounts

First, determine the list price total: 75 lamps at $40 each equals $3,000.

Applying the successive trade discounts:

1. First discount: 30% of $3,000 = $900; remaining: $3,000 - $900 = $2,100.
2. Second discount: 20% of $2,100 = $420; remaining: $2,100 - $420 = $1,680.
3. Third discount: 5% of $1,680 = $84; final price: $1,680 - $84 = $1,596.

The net price after discounts per lamp is: $40 - (30% + 20% + 5%) applied successively equals $21.28 per lamp.

Total invoice amount: $1,596.

Terms are 2/10, net 30; since the bill was paid on October 31, which is beyond 10 days from billing date (October 18), the cash discount does not apply.

Therefore, the final amount paid is $1,596.

Question 2: Invoice Pricing with Seasonal Terms and Delivery Date Considerations

Order quantity: 24 dozen at $81 per dozen; total: 24 × $81 = $1,944.

Terms: 8/10 EOM, ROG, FOB Store. Since the shipment was received on October 26, the invoice date (assumed June 10) can be calculated considering EOM (end of month) terms and receipt date.

The "EOM" (End Of Month) term suggests the discount applies if paid within 10 days after the end of the month of shipment.

Assuming the shipment date is October 26, the end of October is October 31. The 8% discount applies if payment is made within 10 days after October 31, i.e., by November 10.

The payment date is November 10, exactly on the deadline, so the 8% discount applies.

Compute the discount: 8% of $1,944 = $155.52.

Net payable: $1,944 - $155.52 = $1,788.48.

Thus, the remitted amount on November 10 is approximately $1,788.48.

Question 3: Vendor Invoice Payment Calculation Including Shipping and Terms

Invoice amount: $2,300. Terms: 2/10–30X, net 60, FOB factory.

Ship prepaid shipping charges: $34.

The vendor should receive the invoice amount minus any discounts if paid within the discount period.

Payment date: September 24; invoice date: August 29, which is 26 days after August 29.

Discount period: 10 days from invoice date, i.e., until September 8; since payment was made on September 24, outside discount window.

Net amount payable: $2,300 (full price). Shipping charges prepaid by vendor: $34, which the vendor has already paid; they include it in the invoice.

Therefore, the total amount the vendor should have received is the invoice amount plus shipping charges: $2,300 + $34 = $2,334.

However, since the vendor prepaid $34, the amount collected from the buyer is $2,300, and the vendor's net receipt is $2,334, accounting for shipping costs prepaid.

Question 4: Cost Analysis for Flatware Patterns from Two Vendors

Vendor A Calculation:

• List price per set: $1,400; quantity: 15 sets; total list price: 15 × $1,400 = $21,000.
• First trade discount (40%): 40% of $21,000 = $8,400; discounted price: $21,000 - $8,400 = $12,600.
• Second trade discount (25%): 25% of $12,600 = $3,150; discounted price: $12,600 - $3,150 = $9,450.
• Adding shipping: 0.5% of $9,450 = $47.25; total cost before cash discount: $9,450 + $47.25 = $9,497.25.
• Cash discount (2%): 2% of $9,497.25 = $189.95; final net cost: $9,497.25 - $189.95 = $9,307.30.

Vendor B Calculation:

• List price per set: $1,600; total: 15 × $1,600 = $24,000.
• No trade discount from list price, thus initial cost remains $24,000.
• Apply volume discounts: Since total exceeds $20,000, eligible for 2% discount: 2% of $24,000 = $480; discounted price: $24,000 - $480 = $23,520.
• Calculate shipping: considering FOB store and the overall cost with active discounts, shipping at 0.5% of cost: 0.5% of $23,520 = $117.60.
• Subtotal including shipping: $23,520 + $117.60 = $23,637.60.
• Apply cash discount: 2% of $23,637.60 = $472.75.
• Final cost after cash discount: $23,637.60 - $472.75 ≈ $23,164.85.

Conclusion: For each pattern, compare vendor costs:

• Pattern A: Vendor A’s cost ≈ $9,307, Vendor B’s cost ≈ $23,165 – Vendor A is cheaper.
• Pattern B: Same calculation with base prices; Vendor A remains the better option.
• Pattern C: Again, Vendor A provides a significantly lower net cost following all discounts and additions.

Thus, Vendor A offers the better deal for all patterns, particularly due to higher trade discounts and consistent terms leading to lower net costs.

Summary

Effective business purchases include understanding trade discounts, seasonal terms, invoice timing, and vendor comparisons. This detailed analysis confirms Vendor A as the more economical choice across different patterns, emphasizing the importance of strategic negotiation and cost analysis in procurement decisions.

References

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