Question

1.Mel's furniture received an invoice dated September 27 for five bedroom sets at $3,000 each. The invoice indicated a trade discount of 5/8/3. The seller of the furniture prepaid the freight of $200. Terms were 2/10 EOM. Assuming Mel pays on November 2, what amount would be paid? (Be sure to include the freight cost.) (Round your answer to the nearest cent.)

2.Calculate the final selling price to the nearest cent (Round each calculation to nearest cent as needed):

Original Selling Price	1st Markdown	2nd Markdown	Markup	Final Markdown
$6,000	9%	13%	4%	9%

Answer 1

1). Since Mel pays on November 2, he doesn't get the 2% discount which he would have gotten if he had paid within 10 days of September 27.

So

Full Price = 5 bedroom sets @ $3,000 each = $15,000

Balance Payable = Full Price * (1 - Discount%)

= $15,000 * (1 - 0.05) * (1 - 0.08) * (1 - 0.03) = $12.716.70

Total Payable Amount = Balance payable + Freight Cost

= $12,716.70 + $200 = $12,916.70

2). Final Selling Price = Original Selling Price * (1 - Markdown%) * (1+ Markup%)

= $6,000 * (1 - 0.09) * (1 - 0.13) * (1 + 0.04) * (1 - 0.09) = $4,495.59