An invoice dated 5/19/xx received by Jones Supply indicated a balance of $17,000. This balance included a freight charge of $1,000. Terms of the bill were 5/10, 4/30, n/60. Assuming Jones pays off the bill on June 4, he pays:

Question

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Jones pays off the bill on June 4, which falls within the 4/30 terms (4% discount if paid within 30 days). The original balance is $17,000, including a freight charge of $1,000. The discount should be applied to the balance minus the freight charge, as freight charges are typically not discounted. Thus, the discount is calculated on $16,000 ($17,000 - $1,000). A 4% discount on $16,000 is $640, so Jones would pay $16,000 - $640 = $15,360. None of the provided options match this calculation.

An Invoice Dated 5/19/xx Received by Jones Supply Indicated a Balance