Question

Andrea purchased raw materials for her factory and received an invoice for $16,000 dated May 17, 2018, with terms 3/10, 2.3/15, n/30. She made a partial payment of $10,000 on June 1, 2018, and the balance on June 16, 2018. What was the total Andrea paid for the invoice?

Answer 1

Invoice Date	17-May-18
Invoice Amount	$                  16,000
Terms of Payment	3/10, 2.3/15, n/30	It means that if buyer makes the payment within 10 days of invoice date, then he will receive 3% discount and if buyer makes the payment within 150 days of invoice date, then he will receive 2.3% discount. If he does not make payment within 10/15 days, then the invice amount is due within 30 days after the invoice date.
Date	Payment made	No. of days after Invoice date	Discount received	Discount amount	Amount paid
a	b	c	d	e = b*d	f = b-e
1-Jun-18	$                  10,000	15	2.3%	$                         230	$    9,770
16-Jun-18	$                    6,000	30	0%	$                             -	$    6,000
Total Amount paid for the invoice					$ 15,770

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