Find the amount due on a $300 invoice received on June 3 and paid on June 11 if the sales terms are 3/15, n/30.
I can't figure this out! Please help!
$291
Sure, I can help you with that! To find the amount due on the invoice, we need to understand the sales terms "3/15, n/30". This term consists of two parts:
1. The first number, in this case, "3", represents the discount percentage offered if the payment is made within a specific period. So, in this case, a 3% discount is allowed if the payment is made within 15 days.
2. The second part, "n/30", indicates the credit period allowed. In this case, it means that the invoice has to be paid within 30 days.
Let's break it down further based on the invoice received on June 3 and the sales terms:
1. Invoice received on June 3.
2. The credit period ends on July 3 (30 days from June 3).
To calculate the discount period, add the number of days mentioned in the sales terms (15 in this case) to the invoice date (June 3):
- Discount period ends on June 18 (June 3 + 15 days).
Now, we need to check if the payment is made within the discount period:
- If the payment is made within the discount period (before June 18), the customer is eligible for a 3% discount on the invoice amount.
- If the payment is made after the discount period but still within the credit period (before July 3), the full invoice amount needs to be paid without any discount.
Assuming the payment was made on June 11, which is within the discount period, we can calculate the amount due on the invoice as follows:
1. Calculate the discount amount:
- Discount amount = Invoice amount * Discount percentage
- Discount amount = $300 * 3% = $9
2. Calculate the amount due after deducting the discount:
- Amount due = Invoice amount - Discount amount
- Amount due = $300 - $9 = $291
Therefore, the amount due on the $300 invoice, received on June 3 and paid on June 11, is $291.