Asked by Monique Kaskonrobinson on Jun 03, 2024
Verified
An invoice for $45,780 has terms of 3/15, n/90. The date of the invoice is March 10. What payment on March 23 would be enough to settle the debt?
A) $44,407
B) $38,913
C) $41,660
D) $45,780
E) $44,219
Invoice Terms
Conditions specified on an invoice, including payment deadlines, cash discount opportunities, and penalties for late payment.
- Determine the total amount payable by accounting for payment conditions and reductions.
Verified Answer
PP
Paola PortabalesJun 03, 2024
Final Answer :
A
Explanation :
The terms 3/15, n/90 mean that the buyer can take a 3% discount if the invoice is paid within 15 days. March 23 is within this 15-day period. To calculate the discounted amount: $45,780 * 0.03 = $1,373.40 discount. So, $45,780 - $1,373.40 = $44,406.60, which rounds to $44,407.
Learning Objectives
- Determine the total amount payable by accounting for payment conditions and reductions.