can someone please help me with the answer to this question? What payment should be made on the invoice in the amount of $ 3,400.00 dated Aug 7 if the terms of sale are 3/15, 2/30,n/45 and the bill is paid Aug 19?
To calculate the payment amount, we need to understand the terms of sale given: 3/15, 2/30, n/45.
These terms are usually expressed in the format: x/y, z/a, n/b. Let's break it down:
- x% discount: This means if the payment is made within the specified number of days from the invoice date, a certain percentage discount will be given.
- y terms: This is the maximum number of days to make the payment in order to receive the discount.
According to the given terms (3/15, 2/30, n/45):
- 3% discount: If the payment is made within 15 days of the invoice date (Aug 7).
- 2% discount: If the payment is made within 30 days of the invoice date.
- No discount: If the payment is made after 45 days of the invoice date.
In this case, the bill is paid on Aug 19, which is 12 days after the invoice date. This falls within the 15-day window, so a 3% discount can be applied.
To calculate the payment amount, subtract the discount from the total invoice amount:
Discount = Invoice amount x (Discount % / 100)
Payment amount = Invoice amount - Discount
Let's calculate it step by step:
Discount = $3,400.00 x (3% / 100) = $102.00
Payment amount = $3,400.00 - $102.00 = $3,298.00
So, the payment to be made on the invoice in the amount of $3,400.00 dated Aug 7, if the bill is paid on Aug 19 considering the terms 3/15, 2/30, n/45, is $3,298.00.