vary from the one giving merely the total amount due to the one stating each item bought during the month, as well as any balance due from the previous month. An illustration is found above. Check this statement.

EXERCISES

1. Make out a statement to Henry Works from the Jerremy Grocery Co.: Balance due, $5.34; July 2, $6.75; July 7, $11.45; July 11, $7.35; July 14, $6.72; July 19, $10.68; July 23, $3.56; July 28, $ 14.85.

2. Make a statement to Geo. R. Beeman from the Jenks Lumber Co.: Balance, $ 145.35; Mar. 5, $ 45.60; Mar. 12, $104.45; Mar. 23, $73.25.

3. Make a statement to Henry Wilson from the St. Louis News for papers furnished him during May: week of May 3, 150; May 10, 150; May 17, 150; May 24, 150. Cost of each copy was 9¢ per week. Give the weekly and total amount for the month.

4. Make up a statement, using your name and that of some firm in your city. Give at least four items.

230.

XVII

COMMERCIAL DISCOUNTS

Reasons for Discounts. Commercial or trade discounts are reductions from original prices. These arise frequently. The retailer makes a reduction on damaged articles, goods sold out of season, and on whatever he may have an oversupply. The wholesaler sells at a discount odd lots, an oversupply, especially large orders, and for prompt payment. The bill at the top of page 197 states that it is due in 60 da., but that 2% discount will be given if paid within 30 da., and 4 % if paid cash, that is, within 10 da.

Wholesale firms issue expensive catalogues which it would be exceedingly costly to reissue with every change in price. Furthermore, a retail merchant may often make a sale of goods not in stock by showing a catalogue to his customer. If the wholesale prices were printed in the catalogues this could not be done. Hence, it is customary to print in catalogues a price higher than the actual price and then provide the retail merchant with a private discount list. This discount list can be renewed cheaply and simply as prices change. 231. Forms of Discounts. In retail trade discounts are often a stated amount or a stated new price. In wholesale trade discounts are as a rule a per cent of the original marked price. State an illustration.

232. Finding the Discount.-The discount, D, is always a certain rate or per cent, R %, of the marked price, Mp. Hence,

233. Finding the Net Price. The net price, Np, is what remains after subtracting the discount from the marked

By replacing D with the value found in (1) we get

(2)

(3)

(4)

1. Find the discount upon goods valued at $ 450 if the rate of discount is 5%; 12 %; 333 %.

2. A bill of goods amounting to $ 845 can be discounted at 3% if paid cash, but need not be paid for 2 mo. What will be the discount if it is paid cash?

3. If money is borrowed at the bank to pay the above bill, the interest rate being 8 %, what will be saved? What will be the per cent of saving?

4. Mrs. Baker finds that canned goods which cost her 28 each can be bought by the dozen at a discount of 7%. What will she save on 5 doz. in buying them by the dozen?

5. Find how much the 5 doz. of canned goods cost Mrs. Baker by equation (2); by equation (4).

6. What per cent of the marked price is paid when the discount is 10%? 15%? 33%? 43%? 28 %? 63%?

7. What is the quantity inside the parentheses in equation (4)? Apply to Ex. 6 above.

8. Complete the above bill; find the gross cost and the net cost.

Make out bills like that above for the following:

9. Bought of K. R. Marks and Co., Trenton, N. J., by Heron Tripps (your city): 3 cases salmon at $7; 5 cases corn at $ 6.50; 2 cases peas at $ 8.50; 7 cases soup at $7.25. Discount, 15%.

10. Bought of Superior Milling Co., Minneapolis, Minn., by K. W. Story (your city): 50 bbl. extra best flour at $14; 20 bbl. graham at $ 12.50; 10 bbl. whole wheat at $15.50; 50 small sacks buckwheat at 40 ¢ each. Discount, 163 %.

11. Bought of Western Text Book Co., Chicago, Ill. (use your own name and city) the following bill: 80 arithmetics at 65; 60 U. S. histories at 75 é; 40 elementaryscience books at $1.10; 70 advanced geographies at 95 ¢. Discount, 20 %.

2 doz. G and R rakes

3 doz. Superior garden tools 2.15

$ 8.45
10.75

3.65 Total

$

12. Complete the above bill and find for what it can be paid within 10 da.

Make out bills like the above for the following and compute the net cost.

13. Bought of H. J. Pape and Sons, New York, by (use your own name and city), the following bill: 16 pairs curtains at $8.50 per pair; 6 mats 9' x 12' at $18.50; 6 mats 8'4" x 10'6" at $16.75; 8 drapes at $13.25. Discount will be 5% cash; 3 %, 30 da.; 1%, 60 da.; cash, 90 da.

14. Bought of A. Q. Rossiter, Chicago, Ill., by J. Z. Wise (your city): 4 dining-tables at $38; 3 doz. diningchairs at $2.50 each; 4 rockers at $14; 3 lady's desks at $32. Discount, 3 %, 10 da.; 2%, 30 da.; net, 60 da.

15. Suggest and make out a bill having a discount for some commodity sold in your town.

16. Solve equation (4), page 195, for Mp.

17. Solve equation (3), page 195, for R %.