What total amount must be remitted if the following invoices, all with terms 4/10, 2/30, n/60, are paid on May 10?

Question

$850 less 20% and 10% dated March 21
$960 less 30% and 16 2/3% dated April 10
$1040 less 33 1/3%, 25%, and 5% dated April 30

Answer 1

To calculate the total amount that must be remitted, we need to consider each invoice individually and apply the appropriate discounts based on the terms.

For the first invoice:
$850 less 20% and 10%
20% of $850 = $170
10% of $850 = $85
Subtracting the discounts:
$850 - $170 - $85 = $595

For the second invoice:
$960 less 30% and 16 2/3%
30% of $960 = $288
16 2/3% of $960 = $160
Subtracting the discounts:
$960 - $288 - $160 = $512

For the third invoice:
$1040 less 33 1/3%, 25%, and 5%
33 1/3% of $1040 = $346.67
25% of $1040 = $260
5% of $1040 = $52
Subtracting the discounts:
$1040 - $346.67 - $260 - $52 = $381.33

Now, let's add up the totals for each invoice:
$595 + $512 + $381.33 = $1488.33

Therefore, the total amount that must be remitted if all the invoices are paid on May 10 is $1488.33.