TLR Productions has received an invoice for $4500 with terms of 3/15,n/50.If TLR pays the invoice on the seventeenth day,the Cash account will be:

Question

Quizplus · Accepted Answer

The invoice terms 3/15,n/50 mean a 3% discount is available if paid within 15 days. Since TLR pays on the 17th day, they do not qualify for the discount and must pay the full amount of $4,500. Therefore, the Cash account will be credited for $4,500.

TLR Productions Has Received an Invoice for $4500 with Terms