An invoice dated on March 31 was received on April 2. It was for 30 training manuals at $25.00 each and four posters at $40.00 each. The terms of the invoice were 5/10, 2/30, n/60. What is the invoice payment amount on April 3?

Question

Quizplus · Accepted Answer

The invoice date and the date of receipt are not important in this case since the terms are given.

5/10, 2/30, n/60 means that there is a 5% discount if payment is made within 10 days, a 2% discount if payment is made within 30 days, and the full amount is due within 60 days.

To calculate the payment amount, we need to first find the total cost of the manuals and posters:

30 manuals x $25/manual = $750 
4 posters x $40/poster = $160 
Total cost = $750 + $160 = $910

Now we need to apply the discounts (if applicable):

If paid within 10 days: $910 x 0.95 = $864.50 
If paid within 30 days: $910 x 0.98 = $891.80

Since the payment is made on April 3, which is within 10 days of the receipt date (April 2), we can take the 5% discount and the payment amount would be $864.50.

Therefore, the best choice is D.

An Invoice Dated on March 31 Was Received on April