Problema Solution
1. 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?
2. If the manufacturer from the question above charges a 4½% late fee, how much would City Cellular owe if it did not pay the balance by the net date?
Answer provided by our tutors
28900 - 650returned goods = 28250,
28250 - (5000 paid - 3% discount because it was paid within 30 days) = net amount due