Calculate the cash discount and the net amount due for the following transaction.
Amount of
Invoice Terms of
Sale Cash
Discount Net
Amount Due
$12,660.00 2/10, n/45 $ $
To calculate the cash discount and the net amount due for this transaction, you need to understand the terms of the sale: 2/10, n/45.
The term "2/10" represents a cash discount percentage and a specific time frame within which the discount can be availed. In this case, the cash discount is 2% and the discount period is 10 days.
The term "n/45" means that the net amount is due within 45 days from the invoice date.
To calculate the cash discount, you need to multiply the invoice amount by the cash discount percentage. In this case, the invoice amount is $12,660.00 and the cash discount is 2%.
Cash Discount = Invoice Amount x Cash Discount Percentage
Cash Discount = $12,660.00 x 0.02
Cash Discount = $253.20
The net amount due can be calculated by subtracting the cash discount from the invoice amount.
Net Amount Due = Invoice Amount - Cash Discount
Net Amount Due = $12,660.00 - $253.20
Net Amount Due = $12,406.80
Therefore, the cash discount is $253.20 and the net amount due is $12,406.80 for this transaction.