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What payment should be made on an invoice in the amount of $3,400 dated August 7 if the terms of sale are 3/15, 2/30, n/45 and the bill is paid on ...
a. ... August 19?
$
b. ... September 3?
$
To calculate the payment amount for an invoice with the given terms of sale, we need to determine the applicable discount period based on the invoice date. Once we have the discount period, we can calculate the payment amount.
The terms of sale "3/15, 2/30, n/45" mean that there are different discount periods available for early payment. Let's break down each part:
- "3/15" means that a 3% discount is available if paid within 15 days.
- "2/30" means that a 2% discount is available if paid within 30 days.
- "n/45" means that the full payment is due within 45 days.
Now, let's calculate the payment amount for each specific payment date:
a. August 19:
Since the invoice is due on August 7, we need to determine if any discount periods apply. Since August 19 is within 15 days from the invoice date, we can take advantage of the 3% discount.
To calculate the payment amount:
Discount amount = Invoice amount * Discount rate
= $3,400 * 0.03
= $102
Payment amount = Invoice amount - Discount amount
= $3,400 - $102
= $3,298
Therefore, the payment due on August 19 should be $3,298.
b. September 3:
September 3 is 27 days after the invoice date, which falls within the 30-day discount period. So, we can take advantage of the 2% discount.
To calculate the payment amount:
Discount amount = Invoice amount * Discount rate
= $3,400 * 0.02
= $68
Payment amount = Invoice amount - Discount amount
= $3,400 - $68
= $3,332
Therefore, the payment due on September 3 should be $3,332.