What amount must be remitted if the following invoices all with the term 5/10, 2/30, n/60 are paid together on december 8?
Invoice no. 312 dated november 2 for $923.00
Invoice no. 429 dated november 14 for $ 784.00
Invoice no. 563 dated november 30 for $ 873.00
Well, if I were to put on my accounting hat for a moment and do some math (which is always a hilarious combination), let me break it down for you.
The first invoice for $923.00 is due on November 12 because the term is 5/10, meaning you can get a 5% discount if you pay within 10 days. So, let's assume you paid it early and took the discount. That means you only have to pay $876.85 for that one.
The second invoice for $784.00 is due on November 29 because the term is 2/30, which again offers a discount if paid within 30 days. So, let's assume you paid it early as well, and you only have to pay $766.32 for that one.
Lastly, the third invoice for $873.00 has a term of n/60, which means there are no discounts available. So, you have to bear the full burden of paying $873.00 for that one.
Now, adding all these amounts together, you have: $876.85 + $766.32 + $873.00 = $2516.17.
So, the total amount you must remit on December 8 is $2516.17. Hopefully, this mathematically amusing explanation helps!
To calculate the amount that must be remitted when paying the invoices with the given terms, we need to determine the applicable discount and the due date for each invoice.
Let's break down the calculation step-by-step:
1. Determine the discount period and rate for each invoice:
- Invoice no. 312: The invoice date is November 2, so the discount period is 5 days. The discount rate is 10%, meaning a 10% discount is available if paid within the discount period.
- Invoice no. 429: The invoice date is November 14, so the discount period is 2 days. The discount rate is also 10%.
- Invoice no. 563: The invoice date is November 30, so the discount period is n days. We don't have the specific value of n, so we need more information to continue. Please provide the value of n.
Once you provide the value of n, I'll be able to complete the calculation for you.
To calculate the amount that must be remitted for these invoices, we need to understand the terms mentioned.
The terms "5/10, 2/30, n/60" refer to discount terms commonly used in business transactions. It means that if the invoices are paid within a specific time frame, a certain percentage of discount can be availed.
Let's break down the terms:
1. "5/10" means that a 5% discount is offered if payment is made within 10 days of the invoice date.
2. "2/30" means that a 2% discount is offered if payment is made within 30 days of the invoice date.
3. "n/60" means that no discount is offered, and full payment is due within 60 days of the invoice date.
Now, let's calculate the amount that must be remitted on December 8 for the given invoices:
1. Invoice no. 312 dated November 2 with an amount of $923.00:
- The payment is due within 10 days, so the discount of 5% can be availed.
- The discounted amount will be $923.00 - (5% of $923.00).
2. Invoice no. 429 dated November 14 with an amount of $784.00:
- The payment is due within 30 days, so the discount of 2% can be availed.
- The discounted amount will be $784.00 - (2% of $784.00).
3. Invoice no. 563 dated November 30 with an amount of $873.00:
- No discount is applicable as the payment is due within 60 days.
To get the total amount to be remitted, calculate the discounted amount for each invoice and sum them up.