What is the cash discount and net amount paid if the gross amount of the invoice or freight paid is 7000$, freight charged is 100$, date of invoice is 4/8, terms of service is 2/10, n/60, and date of payment is 4/15?

To calculate the cash discount and net amount paid, we need to understand the terms of service and the payment date. Let me break it down for you:

Terms of service: 2/10, n/60 means that a cash discount of 2% can be taken if the payment is made within 10 days of the invoice date. Otherwise, the full amount is due within 60 days.

Given information:
- Gross amount of the invoice or freight paid: $7000
- Freight charged: $100
- Date of invoice: 4/8
- Terms of service: 2/10, n/60
- Date of payment: 4/15

1. Calculate the cash discount:
Since the payment date (4/15) is within 10 days of the invoice date (4/8), we can take the cash discount of 2%.

Cash Discount = Gross Amount * Cash Discount Rate
Cash Discount = $7000 * 2% = $140

2. Calculate the net amount paid:
Net Amount Paid = Gross Amount - Cash Discount + Freight Charged
Net Amount Paid = $7000 - $140 + $100 = $6960

Therefore, the cash discount is $140, and the net amount paid is $6960.