Answer:
b. $58,272.00
Step-by-step explanation:
The terms on the invoice, 4/10, n/30 EOM, mean that Manigotagan Corp. can take a 4% discount if payment is made within 10 days. Otherwise, the full amount is due within 30 days of the invoice date, with EOM (End of Month) dating.
To determine how much Manigotagan Corp. paid on September 2nd, we need to consider whether they took the discount or paid the full amount.
Invoice date: August 11th
Goods received: August 13th
To take advantage of the discount, Manigotagan Corp. needs to make payment within 10 days of the invoice date (August 11th).
If Manigotagan Corp. pays within the discount period, they will subtract the discount amount from the total invoice amount.
Discount calculation:
Discount amount = Invoice amount * Discount rate
Discount amount = $60,700.00 * 0.04
Discount amount = $2,428.00
If Manigotagan Corp. pays within the discount period, they will deduct the discount amount from the invoice total:
Payment amount = Invoice amount - Discount amount
Payment amount = $60,700.00 - $2,428.00
Payment amount = $58,272.00