Gross invoice (includes freight): $500
Freight: $100
Date of invoice: 9/10
Terms: 3/10, 1/15, n/30
Date of payment: 9/22
Discount: (A)
Net Price: (B)

Question

Quizplus · Accepted Answer

Start by removing the cost of the freight to get an invoice amount of $400. Since the payment was made within the first 15 days, you will use the second discount rate of 1% to get a discount of $4 and a net payment due of $396; then add the freight of $100 back in to get a total due of $496.

Gross Invoice (Includes Freight): $500