Problema Solution
City Cellular purchased $28,900 in cell phones on April 25. The terms of sale were 4/20, 3/30, n/60. Freight terms were F.O.B. destination. Returned goods amounted to $650. What is the net amount due if City Cellular sends the manufacturer a partial payment of $5,000 on May 20? (Points : 2.5)
Answer provided by our tutors
April 25 to May 20 = 25 days. This is within 3% discount period.
$28,900.00 - $650.00 = $28,250.00 Invoice less returns
Partial payment credit = 5,000.00/0.97 = $5,154.64
$28,250.00 - $5,154.64 = $23,095.36 Net due