Lazy Days Laundry receives an invoice for detergent. The invoice is dated April 9 with

The document detailing a sales transaction is known as a(n) _____ . (7-1)

F.O.B. shipping point and F.O.B. destination are shipping terms that specify where the merchandise _______ is transferred. (7-1)

To extend an invoice, for each line, we multiply the number of items by the _______ per item. (7-2)

To calculate the amount of a single trade discount, we multiply the _______ price by the trade discount rate. (7-3)

The _______ price is the amount a business actually pays for merchandise after the discount has been deducted. (7-4)

To calculate the net price factor, we subtract the trade discount rate from _______ . (7-4)

Write the formula for the trade discount rate. (7-5)

In a chain or _______ of trade discounts, we calculate the final net price by taking each discount one at a time from the previous net price. (7-6)

As a shortcut, we can use the net price _______ method to calculate the net price. (7-7)

To calculate the net price factor, we subtract each trade discountrate from 100% and then _______ all the complements together. (7-7)

A single trade discount that equates to all the discounts in a series or chain is called a single _______ discount. (7-8)

The _______ of sale specify when an invoice must be paid and if a(n) _______ discount is being offered. (7-9)

To calculate the credit given for a partial payment, we divide the amount of the partial payment by 100% _______ the cash discount rate. (7-10)

The most common method for dating an invoice is when the discount period and the credit period start on the date of the invoice. This method is known as _______ dating. (7-11)

All-American Sports can purchase sneakers for $450 per dozen less trade discounts of 14/12 from Ideal Shoes. Fancy Footwear is offering the same sneakers for $435 less trade discounts of 18/6. Which supplier offers a lower net price?

a. What is the net price factor for trade discounts of 25/15/10? b. Use that net price factor to find the net price of a couch listing for $800.

a. What is the net price factor of the trade discount series 20/15/11? b. What is the single equivalent discount?

The Empire Carpet Company orders merchandise for $17,700, including $550 in shipping charges, from Mohawk Carpet Mills on May 4. Carpets valued at $1,390 will be returned because they are damaged. The terms of sale are 2/10, n/30 ROG. The shipment arrives on May26, and Empire wants to take advantage of the cash discount. a. By what date must Empire pay the invoice? b. As the bookkeeper for Empire, how much will you send to Mohawk?

Lazy Days Laundry receives an invoice for detergent. The invoice is dated April 9 with terms of 3/15, n/30. a. What is the discount date? c. I f the invoice terms are changed to 3/15 EOM, what is the new discount date? b. What is the net date? d. What is the new net date?

Neds Sheds purchases building materials from Timbertown Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Neds decides to send in a $2,000 partial payment. a. By what date must the partial payment be sent to take advantage of the cash discount? b. What is the net date? c. If partial payment was sent by the discount date, what is the balance still due on the order?

Club Z is in receipt of new electronics to control the lighting on its dance floor. The invoice, dated June 9, shows the total cost of the equipment as $14,350. Shipping charges amount to $428, and insurance is $72.80. Terms of sale are 2/10 prox. If the invoice is paid on July 9, what is the net amount due?

You are a salesperson for Victory Lane Wholesale Auto Parts. You have just taken a phone order from one of your best customers, Champion Motors. Because you were busy when the call came in, you recorded the details of the order on a notepad. Phone Order Notes The invoice date is April 4, 20XX. The customer order no. is 443B. Champion Motorss warehouse is located at 7011 N.W. 4th Avenue, Columbus, Ohio 43205. Terms of sale3/15, n/45. The order will be filled by D. Watson. The goods will be shipped by truck. Champion Motorss home office is located next to the warehouse at 7013 N.W. 4th Avenue. Champion ordered 44 car batteries, stock #394, listing for $69.95 each and 24 truck batteries, stock #395, listing for $89.95 each. These items get trade discounts of 20/15. Champion also ordered 36 cases of 10W/30 motor oil, stock #838-W, listing for $11.97 per case, and 48 cases of 10W/40 super-oil, stock #1621-S, listing for $14.97 per case. These items get trade discounts of 20/20/12. The shipping charges for the order amount to $67.50. Insurance charges amount to $27.68. a. Transfer your notes to the invoice on the following page, extend each line, and calculate the total. b. What is the discount date of the invoice? c. If Champion sends a partial payment of $1,200 by the discount date, what is the balance due on the invoice? d. What is the net date of the invoice? e. Your company has a policy of charging a 5% late fee if invoice payments are more than five days late. What is the amount of the late fee that Champion will be charged if it fails to pay the balance due on time?