An invoice is dated January 25 with terms 2/10 -20x. Find the final discount date and the net payment date. The net payment date is 20 days after the final discount date.
To find the final discount date and the net payment date, we first need to understand what the terms "2/10 - 20x" mean on an invoice.
The term "2/10" refers to a cash discount offered by the seller to the buyer. In this case, it means that the buyer can take a 2% discount if payment is made within 10 days from the invoice date.
The "-20x" part of the terms refers to the net payment date. It means that the buyer has 20 days from the invoice date to make the full payment without any discount.
Let's calculate the final discount date and the net payment date step by step.
Step 1: Find the final discount date
The final discount date is calculated by adding the number of days within which the buyer can take the cash discount to the invoice date. In this case, the cash discount period is 10 days.
Invoice date: January 25
Cash discount period: 10 days
To find the final discount date, add 10 days to January 25:
Final discount date = January 25 + 10 days = February 4
Therefore, the final discount date is February 4.
Step 2: Find the net payment date
The net payment date is calculated by adding the number of days allowed for full payment without any discount to the invoice date. In this case, the net payment period is 20 days.
Invoice date: January 25
Net payment period: 20 days
To find the net payment date, add 20 days to January 25:
Net payment date = January 25 + 20 days = February 14
Therefore, the net payment date is February 14, which is 20 days after the final discount date.
In summary, the final discount date is February 4, and the net payment date is February 14.
find the final discount date and the net payment date
invoice date June 26
as of June 30
Terms 6/20,n60