Abraham is elected treasurer of his retirement community\'s social group. He rec
ID: 2459122 • Letter: A
Question
Abraham is elected treasurer of his retirement community's social group. He receives an invoice for an order of new jigsaw puzzles with a net price of $212.75 and an invoice date of January 15. The terms of the invoice are 4/5 EOM. Abraham also receives an invoice for snacks and fruit punch w ith a net price of $58.93 and an invoice date of January 29. The terms of this invoice are 2/5 EOM, and since it is dated so near the end of the month, an extension is granted. Abraham makes both payments on February 7. What is the total cash price he pays?Explanation / Answer
2) New jigsaw puzzles = $212.75
Invoice dated jan 15 he should pay within 5 days after end of month it means , feb 5 he should pay but he paid feb 7 so there is no discount
Snack and punch = $58.93 *2/100=$1.18
=$58.93 - $1.18
=$57.75
Invoice dated in jan 29 eom was so near one month extension has taken march 2 can pay
Total Cash price he pay on Feb 7 = $212.75 + $57.75
=270.50
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