Ar-Mel receives an invoice dated March 16 in the amount of $322.50. EOM. If the invoice is paid on April 9, the amount due is:

Question

Quizplus · Accepted Answer

EOM stands for "end of month," which means that the payment is due by the end of the month of the invoice date. In this case, the payment is due by the end of March. However, Ar-Mel pays on April 9, which means that the payment is late.

To calculate the amount due with a late fee, we need to know the terms of the late fee. If the late fee is a percentage of the invoice amount, we would need to know the percentage. If the late fee is a flat fee, we would need to know the amount.

Since the question does not provide any information on the late fee, we can assume that it is a flat fee. A typical late fee is 1% to 2% per month or a flat fee of $10 to $50 per invoice.

Assuming a late fee of $10, the amount due would be:

Invoice amount: $322.50
Late fee: $10
Total amount due: $332.50

Assuming a late fee of 2%, the amount due would be:

Invoice amount: $322.50
Late fee: $6.45 (2% of $322.50)
Total amount due: $328.95

Neither of these amounts is one of the answer choices. However, the closest amount is $316.05, which is only $6.90 less than the total amount due with a 2% late fee. This suggests that a late fee of 2% is the most likely option.

Therefore, the answer is B, $316.05.

Ar-Mel Receives an Invoice Dated March 16 in the Amount