40. An invoice amounting to $1,000 reads: “Less 30%, 10%, and 5%. Terms 2/10, n/30.” It is dated January 19, 19— and paid January 28, 19—.
Explain and distinguish between these reductions of the list price. Give the amount of the check sent in payment of the invoice.
41. Keene owed Sharpe $2,000. Sharpe offered a discount of 5% cash. Not having the ready money, Keene discounted his note at the bank for 60 days at the rate of 6%, the note producing the sum required to discount Sharpe’s claim.
Calculate the amount of this note and make the necessary journal entries to take care of the entire transaction.
42. Equate the following account and find the cash balance due October 1, money being worth 7% per annum, 30 days to the month.
| Charles L. Brown | |||||||
| 19— | 19— | ||||||
| Apr. | 6 | Mdse., 60 days | 2,850.00 | Apr. | 14 | Cash | 800.00 |
| 15 | ” 90 days | 1,475.00 | Returned Mdse. | 125.00 | |||
| 28 | ” 30 days | 3,000.00 | July | 6 | Cash | 1,000.00 | |
| 17 | Note, 30 days | 1,000.00 | |||||
43. A note for $2,500 dated September 15, 1920, bearing interest at 6%, had payments indorsed as follows: November 28, 1920, $750; May 6, 1921, $500; August 12, 1921, $300; January 18, 1922, $600.
Find the amount due May 8, 1922.
44. In a manufacturing concern the total value of property subject to insurance was $500,000, distributed as follows: assembling station $100,000; finished goods warehouse $200,000; raw materials warehouse $100,000; and the remainder on building. The annual insurance premium amounts to $18,890 per year.
Find the insurance burden chargeable to each department if the assembling room rate is 2½ times the raw materials warehouse rate; the finished goods warehouse, 80% of the rate of the assembling room and the manufacturing building rate, three times the assembling room rate.