Question

Sarah just received an invoice for $12,000 with terms of 2/10, n/30. The invoice date was June 1. Her contract with the vendor indicates a charge of 1.5 percent per month on late payments. If Sarah pays this bill on June 15, she will send the vendor a check forA) $11,760.

B) $12,000.

C) $12,180.

D) Cannot answer without more information

Answer 1

B. $12,000

Step-by-step explanation:

Since it is given that

The invoice received for $12,000 with terms of 2/10, n/30 i.e 2 % discount is given if payment is made within 10 days and the net credit period allowed is 30 days

Plus if there is any delay then it would charge 1.5% per month

Now if Sarah pays this bill on June 15, so she sends the check for $12,000 as neither she is eligible for a discount as the payment is 5 days exceeded nor she paid any charged as she paid within 30 days

Therefore, she sends the check for $12,000 only