Question

An invoice of $1000 for merchandise purchased is showing 3/15, n/30,as terms of credit. if the invoice is paid on or before the fifteenth day after the invoice date, the amount to be paid is what?

Answer 1

The amount to be paid on the invoice of $1000 with the terms 3/15, n/30, if settled within 15 days of the invoice date, is $970 after applying the 3% discount.

Step-by-step explanation:

The terms of credit 3/15, n/30 indicate that the buyer can take a 3% discount off the invoice total if they pay within 15 days of the invoice date. Otherwise, the full amount of the invoice is due within 30 days without a discount. To calculate the discounted amount if paid within the 15 days:

1. Calculate the discount amount: $1000 × 0.03 = $30.
2. Subtract the discount from the original invoice: $1000 - $30 = $970.

Therefore, the amount to be paid if the invoice is settled on or before the fifteenth day after the invoice date is $970.