Details of a Purchase Invoice, Credit Terms, and a Purchase

question 47

Short Answer

Details of a purchase invoice, credit terms, and a purchase return are shown below. Assume the credit memo was received and payment made within the discount period. $\begin{array} { l r } \text { Cost of merchandise as shown on purchase invoice } & \$ 9,200 \\\text { Cost of merchandise returned } & 3,700 \\\text { Transportation charges, terms FOB shipping point } & 500 \\\text { Credit terms } & 2 / 10 \mathrm { n } / 30\end{array}$ Compute the following:
a)amount of discount
b)amount paid by purchaser, within the discount period, including freight, if applicable
c)amount paid by purchaser if paid after expiration of discount including freight, if applicable

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Definitions:

Inelastic

Refers to a condition where the demand for a product or service changes very little when there is a change in its price.

Price Elasticities

A measure of how much the quantity demanded or supplied of a good changes in response to a change in its price.

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A government program that provides financial assistance to retirees, disabled workers, and their families.

Labor Economists

Labor economists study the dynamics of workers, jobs, and the markets in which they operate, to understand the factors affecting labor supply and demand.