Answer:
The total amount would be $6,805
Explanation:
The computation of the amount paid is shown below:
invoice amount = $6,500 ($7000 - $500)
Less - discount ($6,500 × 3%) = ($195)
Net balance = $6,305
Add - freight charges = $500
Total amount paid = $6,805
In invoice amount, the freight charges are added, so first, we have to deduct the freight charges to get the actual value than we deduct the discount of 3% since the payment was made on April 30.
From 18 April to April 30, 13 days are there so we take a 3% discount rate since the payment was made within 30 days.
And, after that, the freight charges are added back to get the total amount which would be paid.
