A local company received received an invoice dated March 8, with terms 2 / 10, n / 30, amounting to $3647. They paid the bill March 15. Find the cash discount and net amount paid.

Question

Quizplus · Accepted Answer

The cash discount is calculated as 2% of the total amount due, which is $3647 x 0.02 = $72.94. The net amount paid is then calculated as the total amount due minus the cash discount, which is $3647 - $72.94 = $3574.06. The payment made on March 15 is within the discount period of 10 days, so the discount is applicable. Therefore, the correct answer is C.

A Local Company Received Received an Invoice Dated March 8