Question

An invoice is dated January 17 with terms of 8/10 , 6/20 , 4/30 , n/40 . find the three final discount dates and the net payment date. (type a whole number)

Answer 1

Invoice Date = January 17

• First terms:

8/10 and n/40

This means the final discount can be availed "10" days from Invoice Date (Jan17)

So, it will be:

Jan 17 + 10 days = January 27

Final Discount Date = Jan 27

The net payment date will be "n/40", which is 40 days from invoice date, thus

Net payment date will be:

Jan 17 - Jan 31 = 14 days

Feb 1 - Feb 26 = 26 days

------------------------------------

40 days

Payment Date = Feb 26

• Second terms:

6/20 and n/40

This means the final discount can be availed "20" days from Invoice Date (Jan17)

So, it will be:

Jan 17 + 20 days = Feb 6

Final Discount Date = Feb 6

The net payment date will be "n/40", which is 40 days from invoice date, thus, same as before,

Payment Date = Feb 26

• Third terms:

4/30 and n/40

This means the final discount can be availed "30" days from Invoice Date (Jan17)

So, it will be:

Jan 17 + 20 days = Feb 16

Final Discount Date = Feb 16

The net payment date will be "n/40", which is 40 days from invoice date, thus, same as before,

Payment Date = Feb 26