Question

A company received an invoice for $1734.68 dated October 9 with terms 6/15, 2/30, n/60.  

(a) If the invoice is paid on October 20, how much is to be paid?

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

(b) If the invoice is paid on November 6, how much is to be paid?

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

(c) If the invoice is paid on December 5, how much is to be paid?

(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)

Answer 1

a).

How is to be paid = $1,734.68 x (100% - 6%)
= $1,734.68 x 94%
= $1,630.5992

Note:- The amount is paid within 15 days, then the discount percentage 6% is applicable.

b).

How is to be paid = $1,734.68 x (100% - 2%) = $1,734.68 x 98%
= $1,699.9864

Note:- The amount is paid within 30 days, then the discount percentage 2% is applicable.

c).

How is to be paid = $1,734.68

Note:- The amount paid beyond the discount period, thus, no discount is available.