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On May 25, Morris Hardware Received an Invoice from Precision

Question 23

Essay

On May 25, Morris Hardware received an invoice from Precision Tools Inc. for $5,076.64. The invoice was dated May 22 and offered terms of 2/10, 1/20, n/30. What payment will settle the invoice on:
a) June 1?
b) June 2?
c) June 5?

Correct Answer:

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a) $4,975....

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