Question

Gazelle Corporation received an invoice dated June 17 with terms 1/15, n/30. The amount stated on the invoice was $2012.00.

(a) What is the last day for taking the cash discount?
(b) What is the amount due if the invoice is paid on the last day for taking the discount?
(a) The last day to take the cash discount is
(b) The amount due is $
(Round to the nearest cent as needed.)

Answer 1

The last day Gazelle Corporation can take the cash discount for the invoice dated June 17 is July 2. If they pay by this date, the amount due after a 1% discount on the invoice amount of $2012.00 is $1991.88.

Step-by-step explanation:

Gazelle Corporation received an invoice with the terms 1/15, n/30. This means they have a 1% discount if they pay within 15 days, and the net amount is due within 30 days from June 17.

(a) The last day to take the cash discount is:

To calculate the last day to take the cash discount, we add 15 days to the invoice date, which is June 17.

June 17 + 15 days = July 2.

Therefore, the last day to take the cash discount is July 2.

(b) The amount due is:

Since they have a 1% discount:

Discount = 1% of $2012.00 = $20.12

Amount due after discount = $2012.00 - $20.12 = $1991.88

Thus, the amount due if the invoice is paid by July 2 is $1991.88 (rounded to the nearest cent).