Felix Inc. owes $80,000 to Cat, Inc. for inventory acquired with terms of 3/15.
A. How much will Felix pay if payment is made within the discount period?
B. What transaction will Felix Inc. record on November 30, the company's fiscal year end, if the invoice is dated November 28 and payment will be made on December 12?

Question

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The Answer of Felix Inc. owes $80,000 to Cat, Inc. for inventory acquired with terms of 3/15.
A. How much will Felix pay if payment is made within the discount period?
B. What transaction will Felix Inc. record on November 30, the company's fiscal year end, if the invoice is dated November 28 and payment will be made on December 12?

Felix Inc Owes $80,000 to Cat, Inc