Question

Pallette Manufacturing received an invoice dated June 13 with terms 2/10,n/30. The amount stated on the invoice was $4833.00. (a) What is the last day for taking the cash discount? (b) What is the amount due if the invoice is paid on the last day for taking the discount? (a) The last day to take the cash discount is (b) The amount due is $ (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed)

Answer 1

Discount term: 2/10, n/30, If customer pays dues within 10 days of sale, then he will be eligible to get discount of 2%.
If he not able to pay within 10 days then he will not get discount of 2% & he should pay his dues within 30 days.
(a)
Invoice date : June 13
Last of taking discount is 23 June ( 13 june + 10 days )
Thus, The last day to take the cash discount is	June 23
(b)
Amount due if the invoice is paid on last day for taking the discount:
As per discount term. If amount is paid within discount period, discount will be 2% on Invoice value
Amount is due = Invoice value - Discount
= $ 4833.00 - (2% of $ 4833.00)
= $ 4833.00 - $ 96.66
= $ 4736.34
Thus, The amount is due is $	4736.34