A supplier invoice of $74,500 carries terms 1.5/10, net 30. If paid in the discount period, what check amount should be issued?
Correct Answer
B) $73,382.50
The discount is $74,500 × 1.5% = $1,117.50. Subtract it to obtain the check amount: $74,500 − $1,117.50 = $73,382.50. The terms offer 1.5% off within 10 days, otherwise the full amount is due in 30 days; the stated payment qualifies.
Why This Is the Correct Answer
The discount is $74,500 × 1.5% = $1,117.50. Subtract it to obtain the check amount: $74,500 − $1,117.50 = $73,382.50. The terms offer 1.5% off within 10 days, otherwise the full amount is due in 30 days; the stated payment qualifies.
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