(a) What is the Cash Discount?
The Invoice was June 13th and was paid on the 24th. This means it was paid 11 days after the invoice date, so you would need to use 1/15, which means a 1% discount is paid within 15 days.
The shipping cost wouldn’t be included in the discount, so subtract shipping from total: 800 -40 = 760
1% for the discount, means you pay 0.99 on every dollar
760 x 0.99 = $752.40
The discount would be 760 - 752.40 = $7.60
(b) What is the net amount paid?
Amount paid would be discounted total plus shipping:
752.40 + 40 = $792.40
