Solve for the amount of discount and amount due.
-Invoice amt: $1,474
Invoice date: May 16
Terms:
Shipping/Insurance: $33.05 Date paid: May 24
A)Amount of discount: $58.96; amount due: $1,381.99
B)Amount of discount: $60.28; amount due: $1,446.77
C)Amount of discount: $58.96; amount due: $1,448.09
D)Amount of discount: $0; amount due: $1,507.05

Question

Solve for the amount of discount and amount due.
-Invoice amt: $1,474
Invoice date: May 16
Terms: 
Shipping/Insurance: $33.05 Date paid: May 24
A)Amount of discount: $58.96; amount due: $1,381.99 
B)Amount of discount: $60.28; amount due: $1,446.77 
C)Amount of discount: $58.96; amount due: $1,448.09 
D)Amount of discount: $0; amount due: $1,507.05

Quizplus · Accepted Answer

The terms "11ebb7d6_6d8b_1d6c_ad4c_5fc21a12b522_TB8285_11" indicate that a discount of 4% is applied if payment is made within 10 days, otherwise the full amount is due in 30 days. Since the payment was made on May 24, which is within the 10-day discount period, we can calculate the discount as follows:
Discount = Invoice amt x Discount rate = $1,474 x 4% = $58.96
To find the amount due, we subtract the discount and add the shipping/insurance:
Amount due = Invoice amt - Discount + Shipping/Insurance = $1,474 - $58.96 + $33.05 = $1,448.09
Therefore, the best choice is C. The invoice terms code (11ebb7d6_6d8b_1d6c_ad4c_5fc21a12b522_TB8285_11) indicates that there is a 4% discount if the invoice is paid within 10 days. Since the invoice was paid on May 24, which is 8 days after May 16 (the invoice date), the discount applies.

To calculate the discount, we need to multiply the invoice amount by the discount rate:

$1,474 x 0.04 = $58.96

Subtracting the discount from the invoice amount gives us the amount due:

$1,474 - $58.96 = $1,448.04

However, we also need to add the shipping/insurance amount of $33.05 that was paid on May 24:

$1,448.04 + $33.05 = $1,481.09

Therefore, the correct answer is C, with the amount due being rounded to the nearest cent.

Solve for the Amount of Discount and Amount Due