Happy Valley, Inc. has received an invoice for $6,500 with terms of 3/15, n/45 and uses the net method to record purchases. I

Question

hichkok12 [17]

2 years ago

15

Happy Valley, Inc. has received an invoice for $6,500 with terms of 3/15, n/45 and uses the net method to record purchases. I

f Happy Valley pays the invoice on the seventeenth day, Accounts Payable will be:_________.

Business

1 answer:

Strike441 [17] · Answer 1 · 2022-05-11T06:27:42+03:00

Answer:

$6,500

Explanation:

In these cases, the fraction 3/15 represents that 3% discount will be offered on payment if the payment is made within 15 days.

The fraction n/45 represents the total credit period allowed for this purchase is 45 days.

So if a person makes the payment beyond 15 days there will be no discount offered and accordingly, the purchase price will be paid.

Here, Happy Valley also paid after 15 days, that is on 17th day. Thus, net purchase will be $6,500 and no discount shall be recorded on such payment, or recording the purchase value.

Happy​ Valley, Inc. has received an invoice for​ $6,500 with terms of​ 3/15, n/45 and uses the net method to record purchases. I

Happy Valley, Inc. has received an invoice for $6,500 with terms of 3/15, n/45 and uses the net method to record purchases. I