An invoice dated November 17 is received with credit terms of 3 / 15, N / 40. The due date of the invoice is December 27.

Question

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The credit terms of 3 / 15, N / 40 mean that the buyer can take a 3% discount if they pay within 15 days, or they can pay the full amount within 40 days. The due date of the invoice is December 27, which is 40 days after the invoice date of November 17. Therefore, the buyer can take advantage of the discount if they pay by December 2.

An Invoice Dated November 17 Is Received with Credit Terms