An invoice for product X totals $1,200 and is dated July 6, 2000 with terms 2/10-60X. If the invoice is paid on September 3, 2000, what is the net amount of payment?
A. $912
B. $1,152
C. $1,176
D. $1,200
D
To calculate the net amount of payment, we need to consider the terms mentioned on the invoice. In this case, the terms are 2/10-60X.
The first part, 2/10, means that the buyer is eligible for a discount of 2% if the payment is made within 10 days of the invoice date. In this case, the invoice is dated July 6, 2000, so the discount period ends on July 16, 2000.
The second part, 60X, means that the buyer has a credit period of 60 days to make the payment. In this case, the credit period ends on September 4, 2000 (since the due date is generally the next business day after the credit period ends).
Since the invoice is paid on September 3, 2000, within the credit period but after the discount period, the buyer is not eligible for the discount.
Therefore, the net amount of payment is the total amount mentioned on the invoice, which is $1,200. So, the correct answer is D. $1,200.