https://file.aiquickdraw.com/mathbot/file/17261608664489mvagpw0.jpg

In this table, the terms in the "Invoice Terms" column are expressed as discount terms (e.g., 4/10, 3/20, etc.), which mean the following:

- The first number represents the percentage discount you can get if the payment is made within a certain number of days (the second number).
- The "n/50" (or "n/60") means that the full payment is due in 50 (or 60) days, with no discount beyond the early discount period.

Let’s break down the three rows to determine the appropriate full payment for each entry based on the payment date, then compute the amounts:

### 1. **Invoice Amount: $145,064 (Invoice Date: October 13, 2022)**
   - Invoice Terms: 4/10, 3/20, 2/30, n/50 EOM
   - Receipt of Goods Date: October 15, 2022
   - Full Payment Date: November 7, 2022

   **Explanation**: 
   - The payment date is November 7, 2022. 
   - End of Month (EOM) implies that the clock starts from the end of October.
   - The payment is made within 20 days (November 7), so the applicable discount is 3% (3/20).

   **Full Payment Calculation**:
   \[
   \text{Discount} = 145,064 \times 0.03 = 4,351.92
   \]
   \[
   \text{Full Payment} = 145,064 - 4,351.92 = 140,712.08
   \]

### 2. **Invoice Amount: $103,354 (Invoice Date: February 14, 2022)**
   - Invoice Terms: 5/10, 4/20, 3/30, n/60
   - Receipt of Goods Date: February 12, 2022
   - Full Payment Date: March 3, 2022

   **Explanation**:
   - The payment date is March 3, 2022, which is within 20 days of the invoice date.
   - Therefore, a 4% discount is applied.

   **Full Payment Calculation**:
   \[
   \text{Discount} = 103,354 \times 0.04 = 4,134.16
   \]
   \[
   \text{Full Payment} = 103,354 - 4,134.16 = 99,219.84
   \]

### 3. **Invoice Amount: $53,492 (Invoice Date: July 7, 2022)**
   - Invoice Terms: 4/10, 3/20, 2/30, n/50 ROG
   - Receipt of Goods Date: July 14, 2022
   - Full Payment Date: July 22, 2022

   **Explanation**:
   - ROG means the discount period starts after the Receipt of Goods, i.e., July 14.
   - The payment is made within 10 days of July 14, so a 4% discount applies.

   **Full Payment Calculation**:
   \[
   \text{Discount} = 53,492 \times 0.04 = 2,139.68
   \]
   \[
   \text{Full Payment} = 53,492 - 2,139.68 = 51,352.32
   \]

---

### Final Payments:
1. **$140,712.08**
2. **$99,219.84**
3. **$51,352.32**

Would you like further clarification on any of the calculations, or do you have additional questions?

### Related Questions:
1. How is the "End of Month" (EOM) term different from the standard invoice terms?
2. What is the significance of "ROG" in invoice terms?
3. How would the calculation change if the payment date missed the discount window?
4. What is the best strategy for businesses to save money through early payment discounts?
5. How do invoice terms impact cash flow management for a company?

### Tip:
Always verify whether the discount is applied to the entire invoice amount or only to specific items or services when making a payment based on invoice terms.

For the table below, calculate the full payment required on the payment date that reduces the balance on the invoice to zero. For full marks your answer(s) should be rounded to the nearest cent.

Explore how to calculate full payments on invoices based on discount terms such as 4/10, n/50, and end-of-month (EOM) settings. This guide provides detailed solutions for typical invoicing scenarios, helping you understand how to leverage early payment discounts for better cash flow management.

Math Problem Statement

Solution

Ask a new question for Free

By Image

Math Problem Analysis

Mathematical Concepts

Formulas

Theorems

Suitable Grade Level

Related Recommendation