1. What may appear on an invoice to indicate that delivery is not included?
A. E & OE
B. Ex works
C. 30 days net
D. Settlement discount
2. Why are sales invoices prepared in multiple copies?
(i) To update the accounting records
(ii) To file for reference in case of customer query
(iii) For record keeping purposes in the business
(iv) For sending to the customer
A. (i), (ii) and (iii)
B. (i), (iii) and (iv)
C. (ii), (iii) and (iv)
D. All the above
3. How does a customer know to which transaction a credit note relates?
A. By reference to the credit note number
B. By reference to the amount of the credit note
C. By the reason given for the issue of the credit note
D. By reference to the quoted invoice number on the credit note
4. Three office chairs costing $77 each with an agreed trade discount of 10% have been delivered to a customer. What is the total of the invoice for the three chairs?
A. $7.70
B. $69.30
C. $207.90
D. $210.00
5. A sale was made to a credit customer at a price of $500, less trade discount of 5%. The customer is expected to take advantage of the early settlement discount terms and receive 4% discount for payment within ten days. What is the total of the sales invoice?
A. $456.00
B. $475.00
C. $480.00
D. $495.00
6. A sale was made to a customer at a price of $750. The customer is entitled to 6% trade discount. Early settlement discount of 2% has been offered to the customer for payment within ten days, but the customer is not expected to take advantage of this offer. What is the total of the sales invoice?
A. $690.90
B. $705.00
C. $735.00
D. $750.00
Complete the following sales invoice details:
Terms: Net 30 days.
Given below are three customer purchase orders, an extract from the current price list and the relevant customer details. The most recent sales invoice number was 33825.
| Name | Accounting code | Address | Discounts agreed |
|---|---|---|---|
| DU Enterprises | D46 | Finch Estate | Trade: 5% Settlement: Net 30 days |
| PJ Freeman | F12 | New Street Plymouth Devon PL4 7ZU | Trade: 3% for payment within 10 days Settlement: net 30 days |
| Tab Design | T03 | 22 Fairmount Rd Tavistock Devon TA4 8BB | Trade: 10% Settlement: 4% for payment within 10 days, net 30 days |
Important Notes:
| Code | Description | Price $ |
|---|---|---|
| Y29DI | Plain self-seal envelopes | 7.99 per 500 |
| Y29WW | White window envelopes (A4) | 8.80 per 500 |
| Y13BP | Economy manila plain (A5) | 6.20 per 1,000 |
| Y14BW | Economy manila window (A5) | 7.50 per 1,000 |
| Y21BP | Economy manila plain (A4) | 10.60 per 1,000 |
| Y22BW | Economy manila window (A4) | 11.30 per 1,000 |
| W66MS | Whiteboard marker set (6) | 4.90 |
| W67MS | Whiteboard marker set (10) | 8.30 |
| W41OD | Document wallets (paper) | 4.21 per 50 |
| W420K | Document wallets (plastic) | 15.80 per 100 |
| W550P | Document zipper wallets (plastic) | 8.60 per 10 |
| A91FF | Accordion expanding file | 3.40 |
| A34SP | Suspension files (paper) | 26.70 per 50 |
| P52LK | Personal lockable file | 28.30 |
From the information you are required to prepare sales invoices to be sent out with the orders for these goods.
80 New High Street, Exeter, Devon EX4 2LP
Telephone: 01233 464409
Tax Reg. No. 486 4598 220
Invoice No: E10947
Customer: PJ Freeman
New Street
Plymouth
Devon PL4 7ZU
Customer ref: F12
Order No:
Date/Tax Point: 22 June 20X4
10,000 A5 economy manila plain envelopes _______
10,000 Window envelopes white A4 _______
Terms: 3% for payment within 10 days, Net 30 days
80 New High Street, Exeter, Devon EX4 2LP
Telephone: 01233 464409
Tax Reg. No. 486 4598 220
Invoice No: E10948
Customer: DU Enterprises
Finch Estate
Dartmouth
EX55 9QR
Customer ref: D46
Order No:
Date/Tax Point: 22 June 20X4
200 Suspension files _______
500 Document wallets (paper) _______
400 Document wallets (plastic) _______
Terms: Net 30 days
80 New High Street, Exeter, Devon EX4 2LP
Telephone: 01233 464409
Tax Reg. No. 486 4598 220
Invoice No: E10949
Customer: Tab Design
22 Fairmount Road
Tavistock
Devon TA4 8BB
Customer ref: T03
Order No:
Date/Tax Point: 22 June 20X4
3 Whiteboard marker sets (10) _______
1 Personal lockable file _______
7 Accordion expanding files _______
2,000 Plain self-seal envelopes _______
Terms: 4% for payment within 10 days, Net 30 days
A credit note needs to be prepared for Tab Design, for sales returns. The amount of the credit note was $28.30 before sales tax at 20%. What should be the total value of the credit note?