Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
-Invoice date: Mar 14 Terms:
A)Discount date: May 3; net payment date: May 23
B)Discount date: May 13; net payment date: Jun 2
C)Discount date: May 14; net payment date: Jun 4
D)Discount date: Apr 3; net payment date: Apr 23

Question

Find the discount date and net payment date. (The net payment date is 20 days after the final discount date.)
-Invoice date: Mar 14 Terms: 
A)Discount date: May 3; net payment date: May 23 
B)Discount date: May 13; net payment date: Jun 2 
C)Discount date: May 14; net payment date: Jun 4 
D)Discount date: Apr 3; net payment date: Apr 23

Quizplus · Accepted Answer

The first two digits of the terms code, "11," indicate a 1% discount if paid within 11 days. The next two digits, "eb," represent the end of the discount period, which would be May 13 if the invoice date is Mar 14. Therefore, the discount date is May 13. The net payment date is 20 days after the discount date, which would be Jun 2.

Find the Discount Date and Net Payment Date