Ned's Sheds purchase building materials from Timbertowm Lumber for $3,700 with terms of 4/15, n/30. The invoice is dated October 17. Ned's decides send in a $2,000 partial payment.
Question 1: What is the net date?
Question 2:If partial payment was sent by the discount date, what is the balance still due on the order?
what s the answer ?
To find the answers to your questions, we need to understand the terms given in the scenario.
1. The terms "4/15, n/30" mean that the buyer (Ned's Sheds) is entitled to a cash discount of 4% if the invoice is paid within 15 days. Otherwise, the full payment is due in 30 days.
- The first number (4) represents the cash discount percentage.
- The second number (15) represents the number of days within which the discount can be taken.
- The letter "n" signifies that the remaining balance is due within the specified number of days, in this case, 30 days.
2. Now let's determine the net date, which is the last day to make payment without forfeiting the cash discount. To calculate the net date, we start from the invoice date and add the number of days given for the cash discount:
- Invoice date: October 17
- Cash discount days: 15
- Net date: October 17 + 15 days = November 1
Therefore, the net date in this scenario is November 1. Ned's Sheds will need to make the full payment for the invoice by this date to qualify for the cash discount.
To answer the second question, we need to consider the partial payment sent by Ned's Sheds. Since a partial payment of $2,000 was sent by the discount date, the remaining balance will be calculated after deducting the partial payment from the total invoice amount.
Given:
- Total invoice amount: $3,700
- Partial payment: $2,000
To find the balance due on the order, we subtract the partial payment from the total invoice amount:
- Balance due = Total invoice amount - Partial payment
- Balance due = $3,700 - $2,000
- Balance due = $1,700
Therefore, if the partial payment was sent by the discount date, the balance still due on the order would be $1,700.