ry Bookmarks Window Help a clpccd.instructure.com D Question 2 20 pts 2. Ned\'s

Question

ry Bookmarks Window Help a clpccd.instructure.com D Question 2 20 pts 2. Ned's Sheds purchases building materials from Timberland Lumber for $3,700 with terms of 4/15 n/30. The invoice is dated October 17. Ned decides to send in a $2.000 partial payment. a. By what date must the partial payment be sent to take advantage of the cash discount? Month/Day ie. August 2. b. What is the net date? Month/day ie. August 2 c. If partial payment was sent by the discount date, what is the balance still due on the order? $x.XxX.XX i.e. $5,450.30 D Question 3 20 pts

Explanation / Answer

2. The term 4/15n/30 in payments means 4 % discount offered by the seller, available if the buyer pays the invoice amount within 15 days. Also, if the buyer does not pay the full invoice amount within 15 days to qualify for the discount, then the net amount is due within 30 days after the sales invoice date

a. Net Sheds must make partial payment by November,1 to avail of the discount.

b. The net date is November,16.

c. If a partial payment of $ 2000 is sent by November,1, then the discount is 4 % of $ 2000 i.e. $ 80. The balance amount still due on the order of $ 3700 is $ 3700-$2000-$ 80 = $ 1620.

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