Solve for the amount of discount and amount due.
-Invoice amt: $38.71
Invoice date: May 15
Terms: , net 30
Date paid: May 24
A)Amount of discount: $0.77; amount due: $37.94
B)Amount of discount: $7.74; amount due: $30.97
C)Amount of discount: $3.87; amount due: $34.84
D)Amount of discount: $0; amount due: $38.71

Question

Solve for the amount of discount and amount due.
-Invoice amt: $38.71
Invoice date: May 15
Terms:  , net 30
Date paid: May 24
A)Amount of discount: $0.77; amount due: $37.94 
B)Amount of discount: $7.74; amount due: $30.97 
C)Amount of discount: $3.87; amount due: $34.84 
D)Amount of discount: $0; amount due: $38.71

Quizplus · Accepted Answer

The terms 11ebb7d6_6d88_fa85_ad4c_e766ff8a55a1_TB8285_11 mean that the customer can receive a 2% discount if they pay within 11 days of the invoice date, otherwise the full amount is due within 30 days. Since the invoice was paid on May 24, which is 9 days after the invoice date (May 15), the customer is eligible for the discount.

To calculate the discount, we first find 2% of the invoice amount: 
$38.71 x 0.02 = $0.7742 (rounded to $0.77)

Subtracting the discount from the invoice amount gives us the amount due: 
$38.71 - $0.77 = $37.94

Therefore, the best choice is A)Amount of discount: $0.77; amount due: $37.94. The terms indicate that there is a 1% discount if paid within 11 days, and the full amount is due within 30 days. Since the invoice was paid on May 24, which is 9 days after May 15, the discount applies. 1% of $38.71 is $0.3871, which rounds to $0.77. Therefore, the amount of discount is $0.77 and the amount due is $38.71 - $0.77 = $37.94.

Solve for the Amount of Discount and Amount Due