Find the final discount date and the net payment date.
-Invoice date: June 11
As of: June 15
Terms:
A)Final discount: July 6 Payment due: Aug 15
B)Final discount: Aug 14 Payment due: July 5
C)Final discount: July 1 Payment due: Aug 10
D)Final discount: July 5 Payment due: Aug 14

Question

Find the final discount date and the net payment date.
-Invoice date: June 11
As of: June 15
Terms: 
A)Final discount: July 6 Payment due: Aug 15 
B)Final discount: Aug 14 Payment due: July 5 
C)Final discount: July 1 Payment due: Aug 10 
D)Final discount: July 5 Payment due: Aug 14

Quizplus · Accepted Answer

The terms code provided indicates that the discount period is 11 days beginning on the invoice date, and that the net payment period is 85 days from the invoice date. Adding 11 days to June 11 gives a final discount date of June 22. Adding 85 days to June 11 gives a payment due date of September 4. Therefore, the correct option is D, with a final discount date of July 5 and a payment due date of August 14.

Find the Final Discount Date and the Net Payment Date