An invoice dated on September 30 was received on October 2. It was for 4 pairs of in-line skates at $125.00 each and two pairs of gel roller blades at $110.50 each. The terms of the invoice were 5/10, 2/30, n/60. What is the invoice payment amount on October 27?

Question

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The invoice amount is calculated as follows: (4 pairs of in-line skates * $125.00 each) + (2 pairs of gel roller blades * $110.50 each) = $500 + $221 = $721. The terms 5/10, 2/30, n/60 mean a 5% discount if paid within 10 days, a 2% discount if paid within 30 days, and net amount due within 60 days. Since the payment is made on October 27, which is within 30 days, a 2% discount applies: $721 * 2% = $14.42 discount. Therefore, the payment amount is $721 - $14.42 = $706.58.

An Invoice Dated on September 30 Was Received on October