Saturday, July 6, 2013

How much is paid on an $1750 invoice if the conditions are 8% net 30 and is paid within 15 days? possible choices are a. 1610 dollars b. 1680...

"Net 30"  is a common business term that is shorthand for
the fact that the seller or provider of services expects to receive full payment of the
total invoice amount no more than 30 calendar days after the item has been shipped or
the service has been rendered.


Because cash flow is
considered to be the "life blood" of any business, and also because the older an invoice
is, the less likely it is to be paid in full, it is a common business practice to
provide customers an incentive to pay more quickly by giving them a discount if they do
so, typically by offering a percentage off the invoice
amount.


In you question the percentage discount is 8%. 8%
of the invoice amount is:


.08 x 1750 =
140.


So $140 is your discount for payment in 15
days.


1750 - 140=
1610


Therefore choice A is correct.

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