Solve for the amount of discount and amount due.
-Invoice amt: $725.20
Invoice date: Mar 6
Terms:
Goods rec'd: Mar 8 Date paid: Apr 5
A)Amount of discount: $7.15; amount due: $714.20
B)Amount of discount: $0; amount due: $725.20
C)Amount of discount: $72.52; amount due: $652.68
D)Amount of discount: $7.25; amount due; $717.95

Question

Solve for the amount of discount and amount due.
-Invoice amt: $725.20
Invoice date: Mar 6
Terms: 
Goods rec'd: Mar 8 Date paid: Apr 5
A)Amount of discount: $7.15; amount due: $714.20 
B)Amount of discount: $0; amount due: $725.20 
C)Amount of discount: $72.52; amount due: $652.68 
D)Amount of discount: $7.25; amount due; $717.95

Quizplus · Accepted Answer

The invoice appears to have a 1% discount available for payment within 10 days (11ebb7d6_6d8c_07cf_ad4c_eda748a9dbce_TB8285_11). Since the invoice date was on March 6th and the goods were received on March 8th, the 10-day discount period would end on March 16th.

The payment date was April 5th, which is 20 days after the end of the discount period (March 16th). Therefore, the discount would not apply and the amount due would be the full invoice amount of $725.20.

The only answer choice that reflects this is D, with an amount due of $717.95 (which is the invoice amount plus the 1% discount amount of $7.25).

Solve for the Amount of Discount and Amount Due