BUSINESS MATH 11

Free on Board
(FOB)
FOB Shipping Point
The BUYER must pay for
transportation cost

The tittle to goods will pass

upon the sale.
FOB Destination
The SELLER must pay for
transportation cost
The tittle of goods will pass
upon the delivery of product
Let’s solve
some
problems
Problem 1
• On April 30, Mark purchased office
equipment with the list price of P15,000, and
enjoy 20% trade discount.

Compute for:
a) Discount amount
b) Net price
Problem 2
• On April 30, Mark purchased office
equipment with the list price of P25,000, and
enjoy 15/10/5 trade discount.

Compute for:
a) Total Discount amount
b) Net price
Problem 3
• On April 18, Mark purchased office equipment
with the list price of P30,000, and cash
discount of 5/10, n/30.

Determine:
a) The last day of discount period
b) The end of credit period
c) How much mark shall pay on may 10?
Problem 4
• On April 18, Mark purchased office
equipment with the list price of P30,000, and
cash discount of 5/10 EOM

Determine:
a) The last day of discount period
b) The end of credit period
c) How much mark shall pay on May 10?
Problem 5
• On April 28, Mark purchased office
equipment with the list price of P30,000, and
cash discount of 5/10 EOM

Determine:
a) The last day of discount period
b) The end of credit period
c) How much mark shall pay on may 10?
Problem 6
• On September 8, Sarah purchased office
equipment with the list price of P40,000, with
cash discount term of 5/15, n/45 ROG. She
received the goods on September 18

Determine:
a) The last day of discount period
b) The end of credit period
c) How much she shall pay on OCT 1?
Problem 7
• On July 22, Kim purchased Equipment worth
of P20,000 on account with trade discount of
20% and cash discount term of 2/15, n/45.
Determine:
a) The last day of discount period
b) The end of credit period
c) How much she shall pay on July 30?
Problem 8
• On July 22, Kim purchased Equipment worth
of P20,000 with discount term of 2/15, n/45.
Kim paid 5,000 down payment. and the rest
she paid on July 30.
a) How much kim paid on July 30
Problem 1
• On April 30, Mark purchased office
equipment with the list price of P15,000, and
enjoy 20% trade discount.

Compute for:
a) 3,000
b) 12,000
Problem 2
• On April 30, Mark purchased office
equipment with the list price of P25,000, and
enjoy 15/10/5 trade discount.

Compute for:
a) 6,831.25
b) (25,000 x 0.72675 =18,168.75)
Problem 3
• On April 18, Mark purchased office equipment
with the list price of P30,000, and cash
discount of 5/10, n/30.

a) April 28
b) May 18
c) 30,000
Problem 4
• On April 18, Mark purchased office
equipment with the list price of P30,000, and
cash discount of 5/10 EOM

a) May 10
b) May 30
c) 28,500
Problem 5
• On April 28, Mark purchased office
equipment with the list price of P30,000, and
cash discount of 5/10 EOM

a) Jun 10
b) Jun 30
c) 28,500
Problem 6
• On September 8, Sarah purchased office
equipment with the list price of P40,000,
with cash discount term of 5/15, n/45 ROG.
She received the goods on September 18

a) Oct 3
b) Nov 2
c) 38,000
Problem 7
• On July 22, Kim purchased Equipment worth of
P20,000 on account with trade discount of 20%
and cash discount term of 2/15, n/45.

a) August 6
b) Sept 5
c) .
List price after TD= 20,000 x 80% = 16,000
LP after CD = 16,000 x .98 = 15, 680
Problem 8
• On July 22, Kim purchased Equipment worth
of P20,000 with discount term of 2/15, n/45.
Kim paid 5,000 down payment. and the rest
she paid on July 30.
a) How much kim paid on July 30
20,000 – 5000 = 15,000
15,000 x .98 = 14,700
 DETERMINE THE AMOUNT PAID
TO THE SELLER BY BUYER

Transportation Date of
Date of Inv. Amount Discount Term FOB
Cost / Paid By Payment
Jun 11 100,000 2/15, n/30 Shipping 3,000 / Seller Jun 20
Feb 16 400,000 5/10,2/15, n/45 Shipping 15,000 / Buyer March 3
Nov 12 250,000 20% Trade Dis. Shipping 10,000 Seller Dec 5
Aug 25 150,000 2/10 EOM Destination 5,000 Buyer Sept 10
April 5 300,000 5/15, n/40 Destination 4,000 Seller April 25