A company offers a 2% discount on payments received within 10 days of the invoice date.Otherwise full payment must be received within 30 days of the invoice date.If the invoice date is January 5,the payment date is January 13,and the company received the invoice on January 7,what is the amount that should be remitted assuming a gross sale of $1,000?

Question

Quizplus · Accepted Answer

The correct amount is $980 because the payment was made within 10 days of the invoice date (January 5), qualifying for a 2% discount on the gross sale of $1,000. The discount is $20 ($1,000 * 2%), so the payment amount is $1,000 - $20 = $980.

A Company Offers a 2% Discount on Payments Received Within