Kaden Co. sells merchandise on credit to Jase Co. for $9,600. The invoice is dated July 15 with terms of 1/15, net 45. If Jase Co. chooses not to take the discount, by when should the payment be made?

Question

Quizplus · Accepted Answer

By choosing not to take the discount, Jase Co. forfeits the 1% discount, which amounts to $96 ($9,600 x 0.01). The net amount due, which is the full invoice amount less the discount, is $9,504 ($9,600 - $96). The payment is due 45 days from July 15, which would be August 29.

Kaden Co Sells Merchandise on Credit to Jase Co