Compute the Discount Date, the Due Date, the Amount of Discount

question 36

Short Answer

Compute the discount date, the due date, the amount of discount and amount of the remittance if the required remittance is paid within the discount period.Ray Marshall is a purchasing agent for East Coast Electric and tries to take advantage of all cash discounts on major purchases. On July 7 (invoice date) he purchased parts for service vehicles. The parts cost $3,824.77, but $214.40 worth were returned because they were incorrect. The terms from the supplier were 1/10, net 25.
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Definitions:

Lean Business Model

An approach to business development that emphasizes creating value for customers with minimal waste and resources.

Continuous Improvement

Continuous improvement is an ongoing effort to enhance products, services, or processes through incremental and breakthrough improvements, aiming for efficiency and effectiveness in organizational operations.

Inventory Control

The management and optimization of the purchasing, storing, and selling processes of a business's inventory.

Lean Business Model

Lean Business Model is a strategic approach focused on creating more value for customers with fewer resources, by minimizing waste and optimizing efficiency.