1. Section 1 - Invoices and Trade Discounts

2. Complete an Invoice

3. Invoice Home Accessories Wholesalers Sold To:Kitchens GaloreDate:10-Jun 10100 Fair Oaks BlvdOrder No.796152 Fair Oaks, CA 95628Shipped by:UPS Terms:net Quantity Order No. DescriptionUnit Price Extension Total 6 doz.pastry brush$37.80 doz$226.80 3 gro.napkins, cotton$12.60 gro$37.80 9 doz.cherry pitters$14.04 doz 8food processors (3 qt.)$106.12 ea 53 pr.stainless tongs$68.12 pr Invoice Total Shipping/Insurance $37.45 Total Amt Due Printed record of a purchase and sale.

4. Practice Ch 7, Section 1 – Invoices and Trade Discounts Textbook Exercise 7.1 (pages 271 – 274) _____ #8 – 14 completing an invoice _____ #37 – 40 net cost equivalent _____ #45 – 50 net cost _____ #64 – 66, 68 applications 

5. Calculate Trade Discounts

6. Compute the Part Trade Discounts

7. Computing the Part Shortcut To compute Part: Decimal Form Sale: 15% off. How much do you save on a purchase of $145.95 ? Part = Base x Rate Part = $145.95 x 0.15Part = $21.89 Part = Base x Rate Part = $145.95 x 15%

8. Compute the Part Trade Discounts

9. Trade Discounts Net Cost = Trade Discount is 45%. List Price: $23.75 May occur when a manufacturer or distributor sells items to a retailer. $23.75 x 45% $23.75 x 0.45 $10.69 trade discount List Price –Trade Discount $23.75$10.69$13.06

10. Trade Discount 1 of 3 Compute the net cost. List price of a Sharp EL-531W calculator is $18.99. Trade Discount is 35%. Net Cost = List Price – Trade Discount Net Cost = $18.99 – $6.65 Net Cost = $12.34 $18.99 x 35%$18.99 x 0.35 $6.65

11. Practice Compute Net Price 1) List Price: $14.95Trade Discount: 10% Net Cost = ________ 2) List Price: $475.00Trade Discount: 16% Net Cost = ________ $14.95 x 10% $13.45 $14.95 x.10 = $1.50 $14.95 - $1.50 = $475 x 16% $399.00 $475 x.16 = $76 $475 - $76 = trade discount

12. Calculate Series Discounts

13. Series Discounts Sometimes multiple discounts are offered. Series or chain discount 15/5 means… A 15% discount is applied first. Then the 5% discount is applied to the lowered price from the first discount. 15/5 is not the same as a single 20% discount.

14. Compute Series Discounts 1 of 2 Method 1: Compute each discount separately. List Price: $89.95 Series Discount of : 15/5 Net Cost = ______ Step 1: Apply the 15% discount. $89.95 x 15% = $89.95 - $13.49 = $76.46 $13.49 Step 2: Apply the 5% discount. $76.46 x 5% = $76.46 - $3.82 = $3.82 $72.64

15. Compute Series Discounts 2 of 2 List Price: $548.75 per gr. Series Discount of : 20/10 Net Cost = ______ Method 1: Compute each discount separately. Step 1: Apply the 20% discount. $548.75 x 20% = $548.75 - $109.75 = $439.00 $109.75 Step 2: Apply the 10% discount. $439 x 10% = $439 - $43.90 = $43.90 $395.10

16. Practice Compute Net Price 1) List Price: $14.95Trade Discount: 10% Net Cost = ________ 2) List Price: $475.00Trade Discount: 16% Net Cost = ________ 3) List Price: $12,399.00Trade Discount: 30% Net Cost = _______ $14.95 x 10% $13.45 $14.95 x.10 = $1.50 $14.95 - $1.50 = $475 x 16% $399.00 $475 x.16 = $76 $475 - $76 = $12,399 x 30% $8,679.30 $12,399 x.30 $12,399 - $3,719.70 = = $3,719.70

17. Use complements to speed-up percent computations

18. Analysis List Price: $18.99 Trade Discount: 35% Net Cost = _____ List Price – Trade Discount = Net Cost 100%35% $18.99 $12.34 $6.65 Step 1: $18.99 x 35% = $6.65 Step 2: $18.99 – 6.65= $12.34

19. Analysis Net Cost Using Complements List Price: $18.99 Trade Discount: 35% Net Cost = _____ 65% List Price – Trade Discount = Net Cost 100%35% $18.99 65% is the complement of the 35% trade discount Step 1: $18.99 x 65% = $12.34 $12.34 Net Cost: 65% In general: 100% - Given% = Complement In general: 100% - Given% = Complement

20. Trade Discount Net Cost Using Complements 2 of 3 List Price: $5,850 Trade Discount: 40% Net Cost = _______ 60% List Price – Trade Discount = Net Cost 100%40% $5,850 60% is the complement of the 40% discount Step 1: $5,850 x 60% = $3,510 $3,510

21. List Price: $765.50 Trade Discount: 12% Net Cost = _______ 88% List Price – Trade Discount = Net Cost 100%12% $765.50 88% is the complement of the 12% discount Step 1: $765.50 x 88% = $673.64 $673.64 Trade Discount Net Cost Using Complements 3 of 3

22. Practice Use Complements to Compute Net Price 1) List Price: $842.95Trade Discount: 15% Net Cost = ________ 2) List Price: $3.29Trade Discount: 6% Net Cost = ________ Complement = 100% - 15% = 85% Complement = 100% - 6% = 94% $842.95 x 85%$716.51 $3.29 x 94%$3.09

23. Use Complements to Calculate Series Discounts

24. Determine the net cost using complements. List Price: $89.95 Series Discount of : 15/5 Net Cost = ______ $89.95 x 0.85 x 0.95 = What are the complements of each discount? $72.63 Series Discount w/ Complements 1 of 3 85% and 95% Net cost equivalent = 0.8075 p. 272, #37 - 40

25. Determine the net cost using complements. List Price: $28.99 Series Discount of : 25/10 Net Cost = ______ $28.99 x 0.75 x 0.90 = What are the complements of each discount? $19.57 Series Discount w/ Complements 2 of 3 75% and 90% Net cost equivalent = 0.675 p. 272, #37 - 40

26. Determine the net cost using complements. List Price: $2595 Series Discount of : 15/10/5 Net Cost = ______ $2595 x 0.85 x 0.90 x.95 = What are the complements of each discount? $1885.92 Series Discount w/ Complements 3 of 3 85%, 90%, and 95% Net cost equivalent = 0.72675 p. 272, #37 - 40

27. Practice Ch 7, Section 1 – Invoices and Trade Discounts Textbook Exercise 7.1 (pages 271 – 274) _____ #8 – 14 completing an invoice _____ #37 – 40 net cost equivalent _____ #45 – 50 net cost _____ #64 – 66, 68 applications   