Solve the problem.
-An invoice received from Midtown Office Supply Distributors is dated Mar 4 with terms of 2/10 prox. Find the final date on which the cash discount may be taken and the net payment date.
A)Final discount date: Mar 14; net payment date: Apr 3
B)Final discount date: Apr 10; net payment date: May 1
C)Final discount date: Apr 10; net payment date: Apr 30
D)Final discount date: Mar 14; net payment date: Mar 31

Question

Quizplus · Accepted Answer

The terms "2/10 prox" mean a 2% discount is available if paid within 10 days of the end of the month following the invoice date. Since the invoice is dated Mar 4, the discount period ends 10 days after March, which is April 10. The net payment is due by the end of the following month, which is April 30.

Solve the Problem. -An Invoice Received from Midtown Office Supply Distributors Is Dated