Isaac Co. sells merchandise on credit to Sonar Co in the amount of $5,700. The invoice is dated on April 1 with terms of 1/15, net 45. What is the amount of the discount and up to what date must the invoice be paid in order for the buyer to take advantage of the discount?

Question

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The discount is 1% of $5,700, which is $57. The discount period is 15 days from the invoice date, so the invoice must be paid by April 15 to take advantage of the discount.

Isaac Co Sells Merchandise on Credit to Sonar Co in the the Amount