BM11: Chapter 1

PROBLEM 1
Determine the Discount Amount and Net
Price of each of the following scenarios:
(show your complete solution)
1) Harlk is a small time vendor, purchased a second hand
equipment with the list price of P40,000 with 20% trade
discount.
2) Jon purchased a piece of furniture with list price of
P80,000 with the trade discount of 20/15/10.
3) Heidi purchased a computer set on June 13, 2013 for
20,000 with discount terms of 5/10, n /30. She paid on
July 5, 2013.
 Date of End of End of
Date of Inv. Receipt of Discount Term Discount Credit
Goods Period Period
1. Feb 19, 2013 Feb 22, 2013 2/10, n/ 30
2. Mar 26, 2013 Mar 30, 2013 5/15, n / 45 ROG
3. August 28, 2013 Sept 3, 2013 2/10 EOM
4. Nov 8, 2013 Nov 16, 2013 5/10 EOM
5. Dec 15, 2013 Dec 22, 2013 2/45, n/90
 Date of
Date of Date of Discount Net
Receipt Discount Term List Price
Inv. Payment Amount Price
of Goods

1. March 18 March 22 2/10, n/ 30 March 30 100,000

2. Feb 18 Feb 27 5/10, 2/ 15, March 15
80,000
n/45
3. Sept 15 Sept 22 2/10 EOM Oct 09 5,000
4. Oct 5 Oct 5 5/10 EOM Nov 1 350,000
5. Jun 19 Jul 10 2/45, n/90 ROG August 5 400,000
 Discoun
Date Date of Discount Transportation
List Price FOB Payment t
of Inv. Payment Term Cost / Paid by
Amount
1. 6/22 7/1 100,000 5/10,2/15 Destination 2000/ Buyer
2. 7/12 7/20 300,000 20% Destination 3000/ Seller
3. 2/18 3/5 200,000 2/10 Destination
2500/ Buyer
EOM
4. 1/19 2/1 250,000 5/15, Shipping Point
1000 / Seller
n/45
5. 9/4 9/10 650,000 6/15, Shipping Point
8000 / buyer
n/30
6. 10/16 10/ 25 50,000 10% Shipping Point 500 / Seller
1) Harlk is a small time vendor, purchased a second hand
equipment with the list price of P40,000 with 20% trade
discount.
DA = 40,000 x 20% = 8,000
NP: 40,000 – 8,000 = 32,000
1) Jon purchased a piece of furniture with list price of
P80,000 with the trade discount of 20/15/10.
NP : 80,000 x0.612 =48,960
DA : 80,000 – 48,960 =31,040
2) Heidi purchased a computer set on June 13, 2013 for
20,000 with discount terms of 5/10, n /30. She paid on
July 5, 2013.
DA = 0
NP = 20,000
 Date of End of End of
Date of Inv. Receipt of Discount Term Discount Credit
Goods Period Period
1. Feb 19, 2013 Feb 22, 2013 2/10, n/ 30 Mar 1 Mar 21
2. Mar 26, 2013 Mar 30, 2013 5/15, n / 45 ROG April 14 May 14
3. August 28, 2013 Sept 3, 2013 2/10 EOM Oct 10 Oct 30
4. Nov 8, 2013 Nov 16, 2013 5/10 EOM Dec 10 Dec 30
5. Dec 15, 2013 Dec 22, 2013 2/45, n/90 Jan 29, 14 Mar 15, 14
 Date of
Date of Date of Discount Net
Receipt Discount Term List Price
Inv. Payment Amount Price
of Goods

1. March 18 March 22 2/10, n/ 30 March 30 100,000 0 100,000

2. Feb 18 Feb 27 5/10, 2/ 15, March 15
80,000 0 80,000
n/45
3. Sept 15 Sept 22 2/10 EOM Oct 09 250,000 5,000 245,000
4. Oct 5 Oct 5 5/10 EOM Nov 1 368,421.05 18,421.05 350,000
5. Jun 19 Jul 10 2/45, n/90 ROG August 5 400,000 8,000 392,000
 Discoun
Date Date of Discount Transportation
List Price FOB Payment t
of Inv. Payment Term Cost / Paid by
Amount
1. 6/22 7/1 100,000 5/10,2/15 Destination 2000/ Buyer 93,000 5,000
2. 7/12 7/20 300,000 20% Destination 3000/ Seller 240,000 60,000
3. 2/18 3/5 200,000 2/10 Destination 193,500 4,000
2500/ Buyer
EOM
4. 1/19 2/1 250,000 5/15, Shipping Point 238,500 12,500
1000 / Seller
n/45
5. 9/4 9/10 650,000 6/15, Shipping Point 611,000 39,000
8000 / buyer
n/30
6. 10/16 10/ 25 50,000 10% Shipping Point 500 / Seller 45,500 5,000