Victory Lane

 

This assignment is Problem 22 on Page 227 in your textbook. A salesperson for the parts company takes a phone order and

was too busy to write it on an invoice when the call came in, so he wrote it on a notepad. The assignment is to calculate

specified values such as extended values, subtotals, discounts, and invoice total. An invoice number is not provided so

you are to use invoice number 321. Make sure you do the four questions that accompany the problem in the book.

Note: You must apply the trade discounts prior to writing the extended prices! That is the purpose of this assignment.

Save the Victory Lane Auto Parts Invoice document to your computer. Enter the information from the Phone Order Notes (pg.

227) into the appropriate places on the invoice. Complete all necessary calculations.
BUSINESS DECISION: THE Busy EXECUTIVE
22. You are a salesperson for Victory Lane Wholesale Auto Parts. You have ju st 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.
Champio1i Motors’ s warehouse is located at 7011N.W. 4th Avenue, Columbus, Ohio 43205. Terms of sale-3/15, n/45 .
The order will be filled by D.Watson. The goods will be shipped by truck.
Champion Motors’s 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 batter­ ies, stock #395, listing for

$89.95 each. These items get trade discounts of 20/15.
Champion also ordered 36 cases of lOW/30 motor oil, stock #838-W, listing for $11 .97 per case, and 48 cases of lOW/40

super-oil, stock #1621-S, listing for $14.97 per case. These items get trade discoonts 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?

e

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Founded in 1928, Gen.uine Parts Company is a service orgari’1zation engaged in the distribution of automotive replacement

parts, industrial replacement parts,office products,
and efectrical/electronic materials.The company serves customers from more than 1,900 locations with approximately 31,700

employees.
NAPA, representing the Automotive Parts Group at Genuine Parts, is the central hub
of company activity. The group consists of 58 NAPA distribution centers serving
approximately 5,800 NAPA Auto Parts Stores,of which 1,000 are company-owned.

c. If Champion sends a partial payment of $1,200 by the discount date, what is the balance due Source: Based on

www.napaonl ine.com
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?
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