Beard Auction receives an invoice from one of its European suppliers for antiques. The amount of the invoice is $40,000 with terms of 3/10, net/60. If the invoice is paid on day 20, Beard is entitled to a ____ cash discount and will write the check for ____.

Question

Quizplus · Accepted Answer

The terms 3/10, net/60 mean that a 3% discount is available if the invoice is paid within 10 days; otherwise, the full amount is due within 60 days. Since the invoice is paid on day 20, Beard Auction does not qualify for the discount and must pay the full amount of $40,000.

Beard Auction Receives an Invoice from One of Its European