Question

A company received an invoice for $3290.35 dated June 14 with terms 4/15, 3​/30, ​n/60.  ​

(a) If the invoice is paid on June 20 how much is to be​ paid?

​(b) If the invoice is paid on July 11​, how much is to be​ paid?

​(c) If the invoice is paid on August 10, how much is to be​ paid?

Answer 1

a)

If the invoice amount is paid within 15 days from the date of invoice discount allowed is 4%

Amount to be paid on June 20= $3,290.35(100%-4%)

=$3,158.74

b)

If the invoice amount is paid within 30 days from the date of invoice discount allowed is 3%

Amount to be paid on July 11= $3,290.35(100%-3%)

=$3,191.64

c)

If the invoice amount is paid within 60 days from the date of invoice no discount is allowed.

Amount to be paid on Aug 10= $3,290.35

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