Chrisnews12
Answered

Hello, I was wondering if someone would be able to help me with this problem I'm on. Thanks :)


Bally Manufacturing sent Intel Corporation an invoice for machinery with a $14,000 list price. Bally dated the invoice July 23 with 2/10 EOM terms. Intel receives a 40% trade discount. Intel pays the invoice on August 5. On August 1, Intel Corporation returns $100 of the machinery due to defects. What does Intel pay Bally on August 5? (Round your answer to the nearest cent.)


Payable amount $_____

Verified Answer :


Price after trade discount = $14,000 - (40% trade discount)


Price after trade discount = $14,000 - ($14,000 0.4)


Price after trade discount = $14,000 - ($5,600)


Price after trade discount = $8,400 Price after trade discount = $8,400


2/10 EOM price = $8,400 - (2% discount)


2/10 EOM price = $8,400 - ($8,400 0.02)


2/10 EOM price = $8,400 - ($168)


2/10 EOM price = $8,232


So Intel will pay $8,232 on August 5.
Hope this helps.

On August 5 Intel pay $8132 to Bally after deducting all the given discounts.

What is discount?

" Discount is defined as the reduction in the actual price of the product by some percentage or amount."

According to the question,

List price of machinery = $14,000

Conditions given,

Bally dated invoice July 23 with 2/10 EOM terms.

Trade discount  given by Intel = 40%

Amount return by Intel on August 1 due to defect = $100

Apply all the conditions to get  the actual amount Intel pay Bally on August 5.

Discount amount = 40% of 14,000

                             = @@MATH_TOKEN_0@@

                             = $5,600

Amount after 40% discount = $14,000 - $5,600

                                               = $8,400

2/10 means 2%discount if the amount received within 10 days

Discount amount at 2% = 2% of 8,400

                                       = @@MATH_TOKEN_1@@

                                       = $168

Amount after 2% discount = $8,400 - $168

                                            = $ 8,232

Deduct $100 from the amount = $8,232 - $100

                                                   = $8,132

Hence, On August 5 Intel pay $8132 to Bally after deducting all the given discounts.

Learn more about discount here

https://brainly.com/question/3541148

#SPJ2

Related Questions