You are a salesperson for Victory Lane Wholesale Auto Parts. You have just taken a phone order from one of your best customers, Champion Motors. Because you were busy when the call came in, you recorded the details of the order on a notepad. Phone Order Notes
The invoice date is April 4, 20XX.
The customer order no. is 443B.
Champion Motorsâs warehouse is located at 7011 N. W. 4th Avenue, Columbus, Ohio 43205.
Terms of saleâ3/15, n/45.
The order will be filled by D. Watson.
The goods will be shipped by truck.
Champion Motorsâs home office is located next to the warehouse at 7013 N. W. 4th Avenue.
Champion ordered 44 car batteries, stock #394, listing for $69.95 each and 24 truck batteries, stock #395, listing for $89.95 each. These items get trade discounts of 20/15.
Champion also ordered 36 cases of 10W/30 motor oil, stock #838-W, listing for $11.97 per case, and 48 cases of 10W/40 super-oil, stock #1621-S, listing for $14.97 per case. These items get trade discounts of 20/20/12.
The shipping charges for the order amount to $67.50.
Insurance charges amount to $27.68.
a. Transfer your notes to the invoice on the following page, extend each line, and calculate the total.
b. What is the discount date of the invoice?
c. If Champion sends a partial payment of $1,200 by the discount date, what is the balance due on the invoice?
d. What is the net date of the invoice?
e. Your company has a policy of charging a 5% late fee if invoice payments are more than five days late. What is the amount of the late fee that Champion will be charged if it fails to pay the balance due on time?