If the invoice is paid on March 29, the amount that should be remitted is $4,641.80.
To calculate the amount that should be remitted for the invoice paid on March 29, we need to consider several factors:
1. Calculate the total cost of the fabric:
- The wholesaler ordered 14 bolts of drapery fabric at $5.50 per yard.
- Each bolt contains 60 yards.
- Therefore, the total cost of the fabric is 14 bolts * 60 yards * $5.50 per yard.
2. Apply the quantity discount:
- The order qualifies for a 2% discount.
- Calculate the discount by multiplying the total cost of the fabric by 2%.
3. Add the freight charges:
- The freight charges were $21.80 and were prepaid.
4. Determine the payment terms:
- The invoice is dated March 18.
- The terms are 2/15, n/30, which means the customer can take a 2% discount if paid within 15 days, otherwise, the full amount is due within 30 days.
Now, let's perform the calculations:
1. Total cost of the fabric:
- 14 bolts * 60 yards * $5.50 = $4,620
2. Apply the quantity discount:
- 2% of $4,620 = $92.40
3. Add the freight charges:
- $4,620 + $21.80 = $4,641.80
4. Determine the payment terms:
- The invoice was dated March 18.
- The payment is due within 30 days, so the payment is still within the terms.