Question 1

Points: 1

Solve for the amount of discount and amount due.


Invoice amt: $44.81

Invoice date: May 6

Terms: 2/10, net 30

Date paid: May 15

A.

Amount of discount: $0.90; amount due: $43.91

B.

Amount of discount: $8.96; amount due: $35.85

C.

Amount of discount: $0; amount due: $44.81

D.

Amount of discount: $4.48; amount due: $40.33

To solve this problem, we need to determine if a discount is applicable and then calculate the amount due based on the terms.

### Step 1: Analyze the terms
- The terms are **2/10, net 30**. This means:
  - A **2% discount** is available if the invoice is paid within **10 days** of the invoice date.
  - Otherwise, the full amount is due within 30 days.

### Step 2: Determine if the discount is applicable
- **Invoice date**: May 6
- **Payment date**: May 15

Since the payment was made on May 15, which is within 10 days from May 6 (May 6 to May 15 = 9 days), the **2% discount** applies.

### Step 3: Calculate the discount
- Invoice amount: $44.81
- Discount rate: 2%

\[
\text{Discount} = 44.81 \times 0.02 = 0.8962 \approx 0.90
\]

So, the **amount of discount** is $0.90.

### Step 4: Calculate the amount due
\[
\text{Amount due} = 44.81 - 0.90 = 43.91
\]

### Final answer:
- **Amount of discount**: $0.90
- **Amount due**: $43.91

The correct answer is **A**.

---

Would you like further details on how the discount was calculated or other parts of the process? Here are 5 related questions to expand on this concept:

1. How do payment terms like "2/10, net 30" impact cash flow for businesses?
2. What would the amount due be if the payment was made after 10 days?
3. Can you calculate the discount for different percentages, like 3% or 5%?
4. How are discounts beneficial for both the buyer and seller?
5. How would a partial payment affect the discount?

**Tip:** Always check the invoice date and payment terms to ensure you're calculating discounts correctly based on the payment date!

Solve for the amount of discount and amount due.

Invoice amt: $44.81
Invoice date: May 6
Terms: 2/10, net 30
Date paid: May 15

A. Amount of discount: $0.90; amount due: $43.91
B. Amount of discount: $8.96; amount due: $35.85
C. Amount of discount: $0; amount due: $44.81
D. Amount of discount: $4.48; amount due: $40.33

Learn how to calculate the discount and amount due when given payment terms of 2/10, net 30. This problem involves percentage calculations and understanding payment terms. Invoice amount: $44.81, payment made within 10 days. Discount is $0.90 and amount due is $43.91.

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