Todd’s Sporting Goods received an invoice for soccer equipment dated July 26 with terms 3/10, 1/15, n/30 in the amount of $3,225.83. Shipping charges were $375.50. Todd’s Sporting Goods receives a 15% trade discount and paid the bill on August 4th. What is the total amount to be paid?

Amount paid = __________

To calculate the amount Todd’s Sporting Goods needs to pay, we need to follow these steps:

1. **Calculate the trade discount:**
   - Trade discount = 15%
   - Invoice amount = $3,225.83
   - Trade discount amount = $ \text{Invoice amount} \times \text{Trade discount} $
   - Trade discount amount = $ 3,225.83 \times 0.15 = 483.87 $

2. **Subtract the trade discount from the invoice amount:**
   - Amount after trade discount = $ 3,225.83 - 483.87 = 2,741.96 $

3. **Add the shipping charges:**
   - Amount after trade discount + Shipping charges = $ 2,741.96 + 375.50 = 3,117.46 $

4. **Apply the payment discount:**
   - The payment was made on August 4th, which is within the 10-day period for a 3% discount (July 26 to August 4 is 9 days).
   - Payment discount = 3%
   - Payment discount amount = $ 3,117.46 \times 0.03 = 93.52 $

5. **Subtract the payment discount from the amount after shipping charges:**
   - Total amount to be paid = $ 3,117.46 - 93.52 = 3,023.94 $

So, the total amount to be paid is **$3,023.94**.

Would you like any further details or have any questions? Here are some related questions:

1. How would the total amount change if the payment was made after 15 days?
2. What if Todd’s Sporting Goods did not take advantage of the payment discount?
3. How do trade discounts affect the cost of goods sold for a company?
4. What are the financial implications of not paying within the discount period?
5. How do shipping charges impact the total payment in such invoice calculations?

**Tip:** Always check if payment discounts are applied before or after adding additional charges like shipping.

Learn how to calculate the total amount Todd’s Sporting Goods needs to pay for an invoice using trade discounts, payment terms (3/10, 1/15, n/30), and shipping charges. Includes a detailed step-by-step solution with examples.

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