Question

g Jacob Co. sells merchandise on credit to Isaiah Co. for $9,700. The invoice is dated May 1 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount? a.$194, May 16 b.$97, May 15 c.$97, May 16 d.$194, May 15

Answer 1

Answer:

Discount amount = $97  and  may 16  

so correct option is c.$97, May 16

Explanation:

given data

sells merchandise on credit =  $9,700

to find out

amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount

solution

we know here Invoice amount that is $9700

so here discount rate till 15 days is 1 %

so Discount amount will be

Discount amount = 1% of $9700

Discount amount = $97

so from 1 may up to 15 days i.e. may 16  

so correct option is c.$97, May 16