QQuestionAccounting
QuestionAccounting
"On July 1, a company receives an invoice for $800 with the terms 1 / 10, net 30. On July 15, the payment should be:
A. $692
B. $790
C. $792
D. $800
E. $808"
10 months agoReport content
Answer
Full Solution Locked
Sign in to view the complete step-by-step solution and unlock all study resources.
Step 1:: Understand the problem and identify the relevant information.
- The company received an invoice for $800 on July 1. - The payment terms are 1 / 10, net 30, which means that if the company pays within 10 days, they will receive a 1% discount, and the net amount due is $800. If not, they must pay the full amount within 30 days. - Today's date is July 15, which is after the 10 -day discount period.
Step 2:: Calculate the amount the company needs to pay if they do not take the discount.
- The full amount due is $$800$$.
- Since the company did not pay within the 10 -day discount period, they must pay the full amount.
Step 3:: Calculate the amount the company would have paid if they took the discount.
- The discounted amount the company would have paid is: Discounted Amount = Invoice Amount - Discount Amount = $$800 - 8 = $792
- To calculate this, first, determine the discount amount: Discount Amount = Invoice Amount * Discount Percentage
Step 4:: Compare the calculated amounts to the answer choices.
- The company must pay the full amount of $$800$$, which corresponds to option D.
Final Answer
The payment on July 15 should be $800.
Need Help with Homework?
Stuck on a difficult problem? We've got you covered:
- Post your question or upload an image
- Get instant step-by-step solutions
- Learn from our AI and community of students