Question

Pallette Manufacturing received an invoice dated March 28 with terms 4/15, 1/30. The amount stated on the invoice was $2173.00 (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

Answer:

a) April 12

b) $2,086.08

Step-by-step explanation:

Data provided:

Invoice receiving date by Pallette Manufacturing = March 28

Terms = 4/15 , n/30

Here,

Numerator is the discount rate

and,

denominator is the number days from the invoice date to pay the dues to avail discount rate

thus,

a) The last day for taking the cash discount = 15 days after the invoice date

= i.e 15 days from March 28

= April 12

b) The amount due if the invoice is paid on the last date

= Invoice amount - Discount

= $2,173 - 4% of $2,173

= $2,173 - $86.92

= $2,086.08