Table 1 shows part of an invoice sent to Northgate Cycles, a retailer, after it bought accessories on credit from a wholesaler. The price shown is the price...
Question 1 Report
Table 1 shows part of an invoice sent to Northgate Cycles, a retailer, after it bought accessories on credit from a wholesaler. The price shown is the price per item before VAT.
| Goods | Quantity | Price per item |
|---|---|---|
| Cycle helmets | 48 | £18.50 |
| LED light sets | 36 | £11.25 |
| Water bottles | 60 | £4.80 |
(a) Identify the person or business that receives this invoice. [1]
(b) Calculate the total price of the goods in Table 1. [2]
(c) State two purposes of an invoice for the buyer. [2]
(d) Explain why the retailer should compare the invoice with its delivery note. [2]
(e) Give three features that must be included on a credit invoice. [3]
Answer Details
(a) The invoice is received by Northgate Cycles, the buyer [1].
(b) Calculate each line total:
\[48\times£18.50=£888\]
\[36\times£11.25=£405\]
\[60\times£4.80=£288\]
\[£888+£405+£288=£1581\]
Total goods price: \(£1581\) [2].
(c) An invoice records the amount due [1] and gives the buyer a record of goods bought [1]. It also helps check prices and quantities and supports accounting records.
(d) Compare it with the delivery note to find differences in quantities or descriptions [1], so an incorrect invoice can be queried before payment [1].
(e) Three required features of a credit invoice may include an invoice number [1], invoice date [1], and the seller's and buyer's names/addresses [1]. Description, quantity, unit/total price and payment terms are also acceptable.
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