Willa's Florist receives an invoice for $2,865.00, which includes an $85.00 freight charge, dated October 24. The credit terms are 3 / 10, 1 / 15, N / 30. If the invoice is paid on November 7, the amount due is:

Question

Quizplus · Accepted Answer

The invoice is paid within 15 days, so a 1% discount applies. The discount is on the merchandise amount ($2,865 - $85 = $2,780). The discount is $27.80 (1% of $2,780). Therefore, the amount due is $2,865 - $27.80 = $2,837.20.

Willa's Florist Receives an Invoice for $2,865