Using cash discount using EOM in business math with freight. Logan Company received from Furniture.com an invoice dated September 29. Terms were 1/10 EOM. List price on the invoice was $8,000 (freight not included). Logan receives a 8/7 chain discount. Freight charges are Logan’s responsibility, but Furniture.com agreed to prepay the $300 freight. What should the Logan Company pay Furniture.com on November 7th ? I know the 1/10 stands for if its paid within 10 days there is a 1% discount. I also know that the 8/7 chain discount is 8% and 7% discounts together added to the invoice. The complimentary of these would be 100-8= 92 and 100-7=93 so .92X.93=.8556 which is the chain discount. Or at least that has worked for most of my chain discount problems. I also know I need to work the freight in the problem somehow. The answers that I have gotten surround 7,213.93 but I am wrong somewhere. Can you help me figure out what I am doing wrong? Explain it all in detail please.
Using cash discount using EOM in business math with freight.
Logan Company received from Furniture.com an invoice dated September 29. Terms were 1/10 EOM. List price on the invoice was $8,000 (freight not included). Logan receives a 8/7 chain discount. Freight charges are Logan’s responsibility, but Furniture.com agreed to prepay the $300 freight.
What should the Logan Company pay Furniture.com on November 7th ?
I know the 1/10 stands for if its paid within 10 days there is a 1% discount. I also know that the 8/7 chain discount is 8% and 7% discounts together added to the invoice. The complimentary of these would be 100-8= 92 and 100-7=93 so .92X.93=.8556 which is the chain discount. Or at least that has worked for most of my chain discount problems. I also know I need to work the freight in the problem somehow. The answers that I have gotten surround 7,213.93 but I am wrong somewhere. Can you help me figure out what I am doing wrong? Explain it all in detail please.
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