price company received an invoice in the amount of $3,800 dated may 24 for merchandise they purchased. the terms of the sales are 3/15, 2/30, n/45. what payment should be made if the invoice is paid on June 20?
To calculate the payment that should be made if the invoice is paid on June 20th, we need to consider the terms of the sales.
The terms of the sales "3/15, 2/30, n/45" mean that the company can get a 3% discount if they pay within 15 days, a 2% discount if they pay within 30 days, and the full amount is due within 45 days.
First, let's calculate the payment if the invoice is paid within the 15-day discount period:
Discount = Amount * Discount rate = $3,800 * 3% = $114
Payment with discount = Amount - Discount = $3,800 - $114 = $3,686
Next, let's calculate the payment if the invoice is paid within the 30-day discount period:
Discount = Amount * Discount rate = $3,800 * 2% = $76
Payment with discount = Amount - Discount = $3,800 - $76 = $3,724
Finally, if the invoice is paid on June 20th, which is after the discount period, the full amount would be due. Therefore, the payment would be $3,800.
In summary, if the invoice is paid on June 20th, the payment that should be made is $3,800.
To determine the payment that should be made if the invoice is paid on June 20th, we need to understand the terms of the sales.
The terms "3/15, 2/30, n/45" refer to the discounts available for early payment. Let's break down what each term means:
1. "3/15" means a 3% discount is allowed if the payment is made within 15 days of the invoice date.
2. "2/30" means a 2% discount is allowed if the payment is made within 30 days of the invoice date.
3. "n/45" means the full payment is due within 45 days of the invoice date (with no discount).
Given that the invoice is dated May 24th and the payment is made on June 20th, we need to figure out which discount period applies.
First, let's calculate the number of days between May 24th and June 20th:
June 20th - May 24th = 27 days
Since this falls within the 30-day discount period, the company is eligible for the "2/30" discount.
To calculate the payment amount, we must subtract the discount from the total invoice amount. In this case, the total invoice amount is $3,800.
2% of $3,800 = 0.02 * $3,800 = $76
The payment should be made by subtracting the discount from the invoice amount:
$3,800 - $76 = $3,724
Therefore, the payment that should be made if the invoice is paid on June 20th is $3,724.