Collaborate on Invoice with Discount Example for Shipping with Ease Using airSlate SignNow

Invoice with discount example for Shipping

hello I'm leeann's bar in this section we will discuss invoices and trade discounts the topics we will cover are we will complete an invoice we will understand Commons shipping terms we will calculate trade discount and understand why they are given we would differentiate between single and series discounts and we will use compliments to calculate series discounts let's begin by defining an invoice an invoice is a tool that businesses use that provides a printed record of a purchase and a sale let's examine this invoice and let's complete extension totals this invoice days auto body and paint purchased from J in case mustang parts the certain items 24 filler tube gaskets at 2.25 cents each 24 times two dollars and twenty five cents is $54 twelve pairs of taillight lens gaskets at four dollars and seventy five cents of hair twelve times four dollars and seventy five cents is fifty seven dollars six pairs of taillight bezels at ten dollars and 80 cents prepare six times to ten dollars and 80 cents is sixty four eighty two grows of door panel fasteners at fourteen twenty per grows two times fourteen 20s 28:40 and eighteen bumper bolt kits at sixteen fifty each eighteen times sixteen fifty is two hundred and ninety seven dollars so the invoice total we add this column is five 100 $1.20 we add on shipping and insurance to obtain a total amount do a 500 $24.95 you will notice that the terms on this invoice say net other invoices have different terms you will see the terminology f OB which means free on board when the terms are f OB shipping point that means that the buyer pays for the shipping if we have f OB destination that means the seller pays for the shipping cash on delivery means the shipper delivers upon receipt of cash and FAS means free alongside ship the freight charges are paid to the dock by the shipper now let's look at some definitions trade discounts are often given and are subtracted from the list price on an invoice a single discount is when only one discount is offered a series or chain discount is when two or more discounts are combined now let's use complements to find the series discounts and to get the net cost equivalent let's find the net cost equivalent for terms 20 2010 the complement is the number that must be added to a given discount to get one or actually it's the portion that is paid so if this is a 20 percent discount then the complement would be 80 percent 20 percent complement would be 80 percent and 10 percent complement would be 90 percent and we multiply these complements together to find the portion that is actually paid which is fifty seven point six percent is the net cost equivalent now let's do an application problem finding net cost equivalents and net cost continental fertilizer supply offers a series discount of 10 20 20 on major purchases if if 58,000 gallon tank bulk of liquid fertilizer is list priced at twenty seven thousand two hundred dollars what does the net cost after trade discounts so we have a series discount of ten twenty twenty so we will obtain the net cost equivalent by multiplying the complements which is ninety percent times eighty percent times eighty percent which gives us a net cost equivalent of 57.6% or 0.576 so the net cost of the liquid fertilizer will actually be twenty seven thousand two hundred dollars times fifty seven point six percent for 0.576 which is fifteen thousand six hundred sixty seven dollars and twenty cents in this section we have discussed invoices and trade discounts invoices are certainly an important part of business which you will run into in your future so we have discussed common shipping terms and trade discounts so it's time for you to go and practice some problems