A bill is for $4000.00 with the terms of 2/ 10-60x cash discount. How much would be remitted if the invoice were paid within the cash discount period?
To calculate the remittance amount if the invoice is paid within the cash discount period, let's break down the terms provided:
1. The terms "2/10-60x" mean that a 2% discount is offered if the invoice is paid within 10 days, otherwise the full amount is due within 60 days.
Now, let's calculate the remittance amount:
1. Start with the total bill amount: $4000.00
2. Apply the discount percentage: 2% of $4000.00 = $80.00
3. Subtract the discount from the total bill amount: $4000.00 - $80.00 = $3920.00
Therefore, if the invoice is paid within the cash discount period, the remittance amount would be $3920.00.