[74.] Stationery.

All accounts to be settled by cash or note on the first of every month.

What sum will pay the above bill on July 1, 1885 ?

$***

[75.] Hardware.

All accounts remaining unsettled 90 days subject to sight draft.

BALTIMORE, June 15, 1885.

Bought of S. G. B. Cook & Co.

MR. FAIRMAN A. SADLER,

What sum will pay the above bill on June 20, 1885 ?

*

**

*

*

50

*

**

**

10

*

**

COMMISSION AND BROKERAGE.

INDUCTIVE EXERCISE.

1. If an agent's rate of commission for service to any principal is 3%, what would be a rational basis upon which to estimate his commission? Ans. The extent or value of the service rendered. Hence, what would be a rational base upon which to estimate an agent's commission of 3%, if the service rendered be the sale of 100 bushels of wheat at 90 cents per bushel? If the service rendered be the purchase of 100 barrels of flour at $8.50 per barrel? If the service rendered be the collection of $375.

[a] The gross proceeds [if a sale] or the prime cost [if a purchase] is the base.

[b] The commission, brokerage, guaranty, net proceeds of a sale, and gross cost of a purchase are percentages, of which the rate of commission, of brokerage, of guaranty, of net proceeds, and of gross cost are the respective rates.

[c] In commission and brokerage, all rates per cent. are understood to express HUNDREDTHS of the gross proceeds [if a sale] or of the prime cost [if a purchase]. [d] If there are other than percentage charges, the net proceeds and gross cost are not percentages, and they should be changed to percentages by adding the non-percentage charges to the net proceeds, or subtracting them from the gross cost.

To find the commission, brokerage, guaranty, net proceeds of a sale, or gross cost of a purchase.

INDUCTIVE EXERCISE.

1. With what term of multiplication does the prime cost of a purchase or gross proceeds of a sale correspond? The rate of commission or the rate of any other percentage? The commission or any other percentage? Hence,

2. What is a commission merchant's charge for buying $300 worth of merchandise, if his rate of commission for buying is 1%? Is 2% ? 3%? 4%? 5%? 6%? 8%? 10% ?

3. What sum should a principal receive as the net proceeds of a sale of $400 worth of merchandise, if his commission merchant's rate of charge for selling is 1%? Is 2% 5%? 10% ?

4. What sum will a principal have to remit to his agent to buy $600 worth of tobacco, if his agent's rate for buying is 1%? Is 2%? 3%? 4%? 6%?

5. What is the rate of net proceeds if the rate of commission is 1%? Is 11%? 11%? 2%? 21% ? 21% ? 3% ?

6. What is the rate of gross cost if the rate of commission is 1%? Is %? 11%? 11%? 2%? 21%? 31%? 175

[e] Purchase or sale × rate of com., brok., or guar. = com., brok., or guar. [f] Gross proceeds of a sale × rate of net proceeds = net proceeds.

[g] Prime cost of a purchase × rate of gross cost

=

= gross cost of purchase.

25. A commission merchant sold a quantity of cotton for $736, and charged 11% commission. What was his commission ?

26. An attorney collected 30% of a note, the face value of which was $75, and charged 10% commission for collecting. What were the net proceeds due the principal?

27. An agent purchased for his principal 7200 bushels of wheat at $1.34 per bushel, charged % commission for buying, $108 for storage, and $120 for cartage. What was the total cost to the principal?

28. An agent sold 42 barrels of apples at $3.25 cash per barrel, and 58 barrels at $3.50 per barrel, payable in 30 days. His charge for selling was 3%, for guaranty 2%, and for cooperage $3. What were the net proceeds due the principal?

29. An agent invested $7500 in cotton, and charged for commission 15%, for freight, prepaid, $125, and for drayage $15; and drew on his principal for the gross cost. What was the face of the draft?

30. A collector received from his principal a claim of $540, of which he succeeded in collecting $380. What sum did he return to his principal if his rate of commission for collecting was 5%?

31. What is the brokerage for effecting the sale of 7000 bushels of wheat at $1.25 per bushel, if the rate of brokerage is 14 per bushel?

32. A commission merchant sold 350 barrels of flour at $7.50 per barrel, paid 50 cents per load of 10 barrels for drayage, and $3 for cooperage. He purchased for the consignor 1570 bushels of wheat at $1.20 per bushel, paid 14 cents per bushel for storage, and 1 cent per bushel for drayage. What is the balance due the consignor if the rate of commission for buying and selling was 2% ?

33. A commission merchant received a consignment of 82 bags. wheat, weight 9870 lb., and 43 bags corn, weight 2422 lb., which he sold at $1.30 per bushel of 60 lb. for the wheat, and 75 cents per bushel of 56 lb. for the corn. His charges were 3% commission for selling, 25 cents per 100 lb. for freight, and $3 for cartage. What were the net proceeds due the principal ?

Copy the following accounts on paper properly ruled, make the necessary extensions, and find the correct balances: