business math

Question

maplewood supply received a 5,250 invoice dated 4/15/06. the $5,250 included $250 freight. terms were 4/10, 3/30, n/60.(a) if maplewood pays the invoice on april 27, what will it pay? (b) if maplewood pays the invoice on may 21, what will it pay?

Answer 1

A)The invoice gets paid after 12 days, so mapplewood will get a 3% discount (3/30, 3% off if paid within 30 days). I assume that Freight doesn't get a discount,  so I subtract it from the invoice value:

 

$5250-$250 (freight)=$5000

 

Discounted invoice becomes:

 

$5000-3%*5000(discount)=$4850

 

Add the freight back to the new invoice:

 

$4850+$250=$5,100 if paid on April 27

 

B) the invoice gets paid after 36 days, so the invoice gets paid in full ( n/60; in other words, invoice paid in full if paid within 60 days, therefore $5,250)