Name and Section: Geneen Louise F.

Gelvoleo 10C
Date: September 22, 2020
CLASH TIME!
A. Determine the DISCOUNT PERIOD given the Date of Entry and specific
credit terms. Put an (X) if not applicable.
Date of Entry Credit Terms 1ST Term 2ND Term 3rd Term
April 2 2/5, n/10 April 3-7 April 8-12 X
April 2 1/10, n/20 April 3-12 April 13-22 X
Sept. 5 2/15, n/30 Sept 6-20 Sept 21-Oct 4 X
Oct. 15 2/20, 1/30, Oct 16-Nov 18 Nov 19-27 Nov 28-Dec 1
n/35
Jan. 1 3/20, 1/25, Jan 2-21 Jan 22-25 Jan 26-29
n/30
June 30 1/10, n/15 July 1-Aug 9 Aug 10-13 X

B. Solve for the given in each transaction. Apply all learnings and skills in
dealing with trade and cash discounts. Show process, if applicable.

1. Ms. Margaret bought a new pair of jeans, on account on February 14. It was
priced worth P 2,000 with a discount of 15%. Terms given was 3/15, 1/20,
n/25. (Note: February has 28 days in this case.)

DATE OF ENTRY: February 14

2000 2000
LIST PRICE: P 2 000 x .15 - 300
TRADE DISCOUNT AMOUNT: P 300 300 1700
NET PRICE: P 1 700
DISCOUNT PERIODS BASED ON CREDIT TERMS:
3/15 – February 15 to March 1
1/20 – March 2 to March 5
n/25 – March 6 to March 9
a. 1700 1700
AMOUNT TO PAY/COLLECT: x .01 - 17
17 1683

b. 1700 1700
x .03 - 51
51 1649
 a. Ms. Margaret settled account on March 4 – P 1683
b. Ms. Margaret settled on February 28 – P 1649

2. Mr. Julius, owner of Julius’ Outlet, sold bulks of merchandise worth to his
regular customer. The following details were presented in his sales invoice:

3/15, 2/25, n/30

DATE OF ENTRY:

LIST PRICE: P 1,485.25

TRADE DISCOUNT AMOUNT: P 148.53
NET PRICE: P 1,336.72

DISCOUNT PERIODS BASED ON CREDIT TERMS:

3/15 – October 2 to October 16
2/25 – October 17 to October 25
n/30 – October 26 to 29
AMOUNT TO PAY/COLLECT:
a. Customer settle account on Oct. 28, 2020 – P 1,336.72 (no discount)