A customer invoice of $4,000 has a stated late charge of 1.5 percent. What late charge is added?
Correct Answer
C) $60.
The late charge is $4,000 x 1.5 percent = $60.
Why This Is the Correct Answer
The late charge is $4,000 x 1.5 percent = $60.
Why the Other Options Are Wrong
Option A: $40.
$40. is below the supported result for accounts receivable collection; it likely uses the wrong base, period, or account bucket.
Option B: $45.
$45. is below the supported result for accounts receivable collection; it likely uses the wrong base, period, or account bucket.
Option D: $75.
$75. is above the supported result for accounts receivable collection; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Late and charge live in different drawers; Applying Late tells which opens.
Reference Hint
Study anchor (closed-book): memorize Accounts receivable collection from CSLB Law and Business Study Guide; CSLB 2026 Law Book / CSLB Law and Business Study Guide Business Finances; know the rule or calculation trigger without relying on exam-room lookup.
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