Bedroom Talk

Mel’s Furniture received an invoice dated September 27 for five bedroom sets at $3,000 each. The invoice indic?

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.)

Public Comments

1. Full price $15,000 (five bedroom sets at $3,000 each) less 5% discount 750 Balance 14,250 less 8% discount 1,140 Balance 13,110 less 3% discount 393.30 Balance payable 12,716.70 add freight payable 200 Total payable $12,916.70 <=== answer 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.