Question

Complete the following by calculating the cash discount and net amount paid:

(If more than one discount, assume date of last discount.)

Gross amount of invoice (freight charge already included)	Freight charge	Date of invoice	Terms of invoice	Date of payment	Cash discount	Net amount paid
$950	None	8/8	3/10, 2/15, n/30	8/22	$	$

Answer 1

Gross amount is $950

There is no freight charge.

So gross invoice = $950

Invoice issued on 8/8 and paid to 8/22. that is 14 days.

SO discount is 2% (2/15 because it is paying between 11 and 14 days)

So cash discount is = 950* 0.02 = $19

So net amount paid = invoice total - cash discount

                                      = 950 - 19 = $931