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    Week 4 5 ULOc Lets Check Activities Solution

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    emem resuento
    The document provides examples of calculating invoice prices, trade discounts, cash discounts, and payments for various purchase scenarios. Discounts are calculated as percentages of the list or invoice price. Final payment amounts are determined after applying any discounts or adding other amounts like prepaid freight.

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    © All Rights Reserved
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    Week 4 5 ULOc Lets Check Activities Solution

    Uploaded by

    emem resuento
    16 views2 pages
    The document provides examples of calculating invoice prices, trade discounts, cash discounts, and payments for various purchase scenarios. Discounts are calculated as percentages of the list or invoice price. Final payment amounts are determined after applying any discounts or adding other amounts like prepaid freight.

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    The document provides examples of calculating invoice prices, trade discounts, cash discounts, and payments for various purchase scenarios. Discounts are calculated as percentages of the list or invoice price. Final payment amounts are determined after applying any discounts or adding other amounts like prepaid freight.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    16 views2 pages

    Week 4 5 ULOc Lets Check Activities Solution

    Uploaded by

    emem resuento
    The document provides examples of calculating invoice prices, trade discounts, cash discounts, and payments for various purchase scenarios. Discounts are calculated as percentages of the list or invoice price. Final payment amounts are determined after applying any discounts or adding other amounts like prepaid freight.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    WEEK 4-5 ULOc Lets Check Solution

    Activity 1

    a. List Price 120,000


    Trade discount (120,000 x 30%) (36,000)
    Invoice Price [120,000 x (1-0.30)] 84,000 1.
    Cash discount (84,000 x 2%) (1,680)
    Cash received as payment [84,000 x (1-0.02) ] 82,320 2.

    b. List Price 120,000


    Trade discount (120,000 x 40%) (48,000)
    Invoice Price [120,000 x (1-0.40)] 72,000
    *Cash discount -
    Cash received as payment 72,000
    *No cash discount taken since customer paid beyond the discount period.

    c. List Price/Invoice Price 120,000


    Cash discount (120,000 x 2%) (2,400)
    Cash received as payment [120,000 x (1-0.02)] 117,600

    NOTE: Counting of the discount period excludes the date of sale.

    d. List Price 120,000


    Trade discount (120,000 x 20%) (24,000)
    Invoice Price [120,000 x (1-0.20)] 96,000
    Cash discount (96,000 x 1%) (960)
    Cash received as payment [96,000 x (1-0.01)] 95,040

    e. List Price 120,000


    Trade discount (120,000 x 40%) (48,000)
    Invoice Price [120,000 x (1-0.40)] 72,000
    Cash discount -
    Cash received as payment 72,000

    Activity 2

    a. Invoice Price 12,000


    Credit memo (3,000)
    Balance 9,000
    Cash discount (9,000 x 2%) (180) 1.
    Cash payable 8,820
    Prepaid freight 1,000
    Adjusted cash payable 9,820 2.

    b. Invoice Price 24,000


    Credit memo (2,000)
    Balance 22,000
    Cash discount (22,000 x 2%) (440)
    Cash payable 21,560

    c. Invoice Price 28,000


    Credit memo (4,000)
    Balance 24,000
    Cash discount (24,000 x 2%) (480)
    Cash payable 23,520

    d. Invoice Price 40,000


    Cash discount (40,000 x 2%) (800)
    Cash payable 39,200
    Prepaid freight 3,000
    Adjusted cash payable 42,200

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