Classic Furniture purchases dining room sets with an invoice date of September 27, and terms of sale of 3/10, n/60. What is the net date?
A) October 17
B) October 22
C) November 2
D) November 26
november 2
march 23
To calculate the net date, we need to start from the invoice date and add the number of days specified in the terms of sale.
The terms of sale, 3/10, n/60, mean that there is a 3% discount if paid within 10 days, and the full amount is due within 60 days.
Starting from the invoice date of September 27, we add 10 days to find the last day to receive the discount: September 27 + 10 days = October 7.
The full amount is due within 60 days, starting from the invoice date: September 27 + 60 days = November 26.
Therefore, the net date, when the full amount is due, would be November 26.
So, the correct answer is:
D) November 26
To determine the net date, we need to understand the terms of sale mentioned in the question.
The terms of sale, "3/10, n/60," are commonly written as "3/10, net 60," where the first number represents the cash discount percentage, the second number represents the number of days within which to take advantage of the discount, and the final term, "net 60," represents the total number of days allowed for payment without incurring any late fees or penalties.
In this case, "3/10" means that if Classic Furniture pays within 10 days of the invoice date, they can receive a 3% discount on the purchase. On the other hand, the "net 60" term means that payment is due within 60 days without incurring any penalties.
To calculate the net date, we start counting from the invoice date, which is September 27. If payment is made within 10 days, we subtract 10 days from the invoice date to find the last day to take advantage of the discount.
September 27 - 10 days = September 17
Therefore, the last day to take advantage of the discount is September 17. However, since the options provided in the question do not mention the discount, we need to calculate the net date, which is the last day by which payment can be made without incurring any penalties.
To calculate the net date, we add 60 days to the invoice date:
September 27 + 60 days = November 26
Therefore, the correct answer is D) November 26, as that is the net date by which payment is due without any penalties.