find the amount due on a $300 invoice received on june 3 and paid on june 11 if the sales terms are 3/15, n/30
0.97 * 300 = ?
$291
To find the amount due on a $300 invoice received on June 3 and paid on June 11 with the sales terms 3/15, n/30, we need to break it down into steps:
Step 1: Determine the discount for early payment:
The term "3/15" means that if the invoice is paid within 15 days, the buyer can take a 3% discount. To calculate the discount:
Discount = Invoice amount * Discount rate
= $300 * 3%
= $300 * 0.03
= $9
Step 2: Determine the net amount if paid within the discount period:
Net Amount = Invoice amount - Discount
= $300 - $9
= $291
Step 3: Determine the amount due if paid after the discount period:
The term "n/30" means that the invoice is due in 30 days. So if it's not paid within the discount period (15 days), there will be no discount. Therefore, the amount due is the same as the net amount.
Amount Due = Net Amount
= $291
Hence, the amount due on the $300 invoice received on June 3 and paid on June 11, with the sales terms 3/15, n/30, is $291.
To find the amount due on a $300 invoice received on June 3 and paid on June 11 with sales terms of 3/15, n/30, you need to understand the meaning of these terms and calculate accordingly.
Sales terms typically consist of two parts: a discount percentage for early payment and a credit period within which the full payment should be made.
In this case, the sales terms mentioned are 3/15, n/30. Let's break it down:
- The number before the slash (/) indicates the discount percentage. In this case, it's 3%. This means that if the payment is made within the specified number of days, a 3% discount will be applied.
- The number after the slash (/) represents the credit period, which is the number of days within which the full payment should be made. In this case, it's 30 days.
Now, let's calculate the amount due:
1. Determine the discount period:
- The discount period is the number of days within which the discount is applicable. In this case, it's 15 days from the invoice date.
2. Calculate the discounted amount:
- Apply the discount percentage (3%) to the invoice amount ($300): $300 * 0.03 = $9.
- Subtract the discounted amount from the invoice amount: $300 - $9 = $291.
3. Determine the credit period:
- The credit period is the number of days within which the payment should be made to avoid any late fees or penalties. In this case, it's 30 days from the invoice date.
4. Determine the payment due date:
- Add the credit period of 30 days to the invoice date of June 3: June 3 + 30 days = July 3.
Therefore, the amount due on the June 3 invoice, paid on June 11, is $291 because the payment was made within the discount period, thus entitling the buyer to the 3% discount.