Export Ltd. received an invoice dated August 21 from Dutch Specialties of Amsterdam with terms 5/20, n/45 for: All items are subject to trade discounts of 33.5%, 7.125%, 4%.
a)What is the last day of the discount period?
b)What is the amount due if the invoice is paid in full on September 6?
c)If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $1500.00?

Question

Export Ltd. received an invoice dated August 21 from Dutch Specialties of Amsterdam with terms 5/20, n/45 for:  All items are subject to trade discounts of 33.5%, 7.125%, 4%.
a)What is the last day of the discount period?
b)What is the amount due if the invoice is paid in full on September 6?
c)If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $1500.00?

Quizplus · Accepted Answer

The Answer of Export Ltd. received an invoice dated August 21 from Dutch Specialties of Amsterdam with terms 5/20, n/45 for:  All items are subject to trade discounts of 33.5%, 7.125%, 4%.
a)What is the last day of the discount period?
b)What is the amount due if the invoice is paid in full on September 6?
c)If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $1500.00?