The problem involves calculating the cash discount and net amount paid on an invoice given certain payment terms.

Key details:

• Gross amount of invoice: $600
• Freight charge: None
• Invoice date: 8/1
• Payment terms: 3/10, 2/15, n/30
  • 3% discount if paid within 10 days
  • 2% discount if paid within 15 days
  • Net (full) amount due in 30 days
• Date of payment: 4/15

Step 1: Determine eligibility for discounts

The invoice was issued on 8/1. The payment was made on 4/15, which is well past the 30-day net period. Therefore:

• No discount can be applied, because the payment was made long after the discount periods had expired (beyond 30 days).

Step 2: Calculate the net amount paid

Since no discount is applied, the full invoice amount is paid:

• Net amount paid = $600

Conclusion:

• Cash discount: $0 (No discount was applied)
• Net amount paid: $600

Would you like more details on the payment terms or any related concepts?

Here are 5 questions for deeper understanding:

1. How would the discount change if the payment was made within 10 days?
2. What happens if payment is made between 10 and 15 days?
3. How would freight charges impact the final amount if they were included?
4. How are payment terms typically structured in different industries?
5. How does late payment affect the relationship between businesses?

Tip: Always check the payment terms carefully to maximize discounts on early payments!