1.An invoice for $600 is dated August 24 and carries sales terms of 1/5. n/30. T
ID: 2487101 • Letter: 1
Question
1.An invoice for $600 is dated August 24 and carries sales terms of 1/5. n/30. The amount
which should be remitted on September 4 to satisfy the obligation is
a. 776
b. 560
c.760
d.800
e. None of the above
2. An invoice for $800.00 dated January 24 and carries sales term of 3/10, 1/20, n/45. PROX. The amount which should be remitted
on February 8, to satisfy the obligation is
a. 776
b. 560
c. 760
d.800
e. None of the above
3. An invoice for $800.00 dated January 24 and carries sales term of 3/10, 1/20, n/45. PROX. The amount which should be remitted
on November 14, to satisfy the obligation is
a. 640
b.776
c.792
d. 746.67
e. None of the above
4. PROX, has the same meaning as
a. List Price
b. Sales Terms
c. E.O.M
d. R.O.G
e. None of the above.
Explanation / Answer
1.
An invoice for $600 is dated August 24 and carries sales terms of 1/5. n/30. The amount
which should be remitted on September 4 to satisfy the obligation is
a. 776
b. 560
c.760
d.800
e. None of the above
1/5. n/30 shows discount of 1% if paid within 5 days otherwise payment due in 30 days.
Since payment has made after 10 days it should be whole sales amount obligation which is $600.So answer is
None of the above.
2.
An invoice for $800.00 dated January 24 and carries sales term of 3/10, 1/20, n/45. PROX. The amount which should be remitted
on February 8, to satisfy the obligation is
a. 776
b. 560
c. 760
d.800
e. None of the above
3/10, 1/20, n/45 shows discount of 3% if paid within 10 days and discount of 1% if paid within 20 days 1% and otherwise payment due in 45 days.
Since payment made within 20 days it should be whole sales amount obligation after 1% of discount which is $800-1%=$792.
So the answer is
e. None of the above
3.
An invoice for $800.00 dated January 24 and carries sales term of 3/10, 1/20, n/45. PROX. The amount which should be remitted
on November 14, to satisfy the obligation is
a. 640
b.776
c.792
d. 746.67
e. None of the above
3/10, 1/20, n/45 shows discount of 3% if paid within 10 days and discount of 1% if paid within 20 days 1% and otherwise payment due in 45 days.
Since payment has not been made within even 45 days it should be whole sales amount obligation which is ($800+ any interest) if any applicable.
So the answer is none of the above.
4. PROX has the same meaning as
a. List Price
b. Sales Terms
c. E.O.M
d. R.O.G
e. None of the above
It is a sale’ payment terms. So the answer is
b. Sales Terms
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