Find the net date for an invoice dated August 7, with terms 4/20, 50 Extra. (Points : 2)
November 5
janusry
To find the net date for an invoice, we need to consider the terms stated on the invoice.
In this case, the terms are stated as 4/20, 50 extra.
The first number, 4, represents the number of days within which the buyer can take advantage of a cash discount. This means that if the buyer pays within 4 days of the invoice date, they will receive a discount.
The second number, 20, represents the number of days within which the buyer is expected to pay the full invoice amount. This is the net due date.
Lastly, the term "50 extra" means that there is an additional 50 days allowed for payment beyond the net due date, with no discount.
To find the net date, we need to add the number of days within the terms to the invoice date.
For this invoice, the net date will be calculated as follows:
Invoice date: August 7th
Terms: 4/20, 50 extra
Add 4 days for the discount period:
August 7th + 4 days = August 11th
Add 20 days for the net due date:
August 11th + 20 days = August 31st
Finally, add 50 extra days:
August 31st + 50 days = October 20th
Therefore, the net date for this invoice is October 20th.
To find the net date for an invoice, you need to understand the meaning of the terms provided. In this case, the terms are 4/20, 50 Extra.
The term "4/20" refers to a payment discount offered for early payment. It means that if the invoice is paid within 4 days, a 20% discount can be applied.
The term "50 Extra" means that if the invoice is not paid within the discount period, an additional 50 days will be added to the net due date. This extra time is given before the payment becomes overdue.
Now, let's calculate the net due date for this invoice:
1. Start with the invoice date, which is August 7.
2. Consider the discount period, which is 4 days. Add these 4 days to the invoice date: August 7 + 4 days = August 11. This is the last day to take advantage of the discount.
3. If the invoice is not paid within the discount period, we need to add the "50 Extra" days. Add 50 days to August 11: August 11 + 50 days = September 30. This is the net due date for the invoice.
Therefore, the net due date for the invoice dated August 7, with terms 4/20, 50 Extra, is September 30.