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Star Fabric Company - Invoice

Star Fabric Company buys fabrics wholesale from suppliers who offer trade discounts for retailers. The company's suppliers also offer a 2% cash discount if invoices are paid within 10 days. The bookkeeper created an invoice payment record spreadsheet to track invoice dates, payment dates, trade discounts, cash discounts, and net amounts paid for seven invoices.

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52 views1 page

Star Fabric Company - Invoice

Star Fabric Company buys fabrics wholesale from suppliers who offer trade discounts for retailers. The company's suppliers also offer a 2% cash discount if invoices are paid within 10 days. The bookkeeper created an invoice payment record spreadsheet to track invoice dates, payment dates, trade discounts, cash discounts, and net amounts paid for seven invoices.

Uploaded by

api-265873784
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Accounting - Accounts Payable

Star Fabric Company, a retail fabric store, buys fabrics wholesale. A wholesaler sometimes
offers a trade discount (a discount to retailers). Star Fabric Companys suppliers offer a cash
discount of 2% if payment of the invoice is made within 10 days.
The bookkeeper would like to prepare an INVOICE PAYMENT RECORD for the company.

1. Create a spreadsheet using the following data:


DATE OF
INVOICE

DATE OF PAYMENT
PAYMENT PERIOD

1
2
2
3
4
4
5

1
2
3
4
5
5
6

5
8
18
15
7
25
30

86
86
86
86
86
86
86

25
12
20
30
30
25
9

86
86
86
86
86
86
86

AMOUNT
OF INVOICE

TRADE
DISC.

986.45
625.50
1166.35
709.80
2349.76
1456.86
1089.95

20%
15%
25%
20%
30%
15%
20%

AMT. TRADE
DISC.

NET
PRICE

CASH
DISC.

2. Find:
a. AMT. TRADE DISC.
HINT: AMOUNT OF INVOICE x TRADE DISC.
b. NET PRICE
c. CASH DISCOUNT
HINT: CALCULATE A 2% DISCOUNT IF THE INVOICE WAS PAID
WITHIN 10 DAYS. THE DISCOUNT IS CALCULATED ON THE
AMOUNT OF THE INVOICE LESS THE TRADE DISCOUNT
d. NET AMT. PAID
3. Save and Print

NET AMT.
PAID

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