An Invoice in the Amount of $1,195

question 2

True/False

An invoice in the amount of $1,195.00 with credit terms of 2 / 10, 1 / 20, N / 30 is dated June 25. If it is paid on July 5, a discount of $23.90 is allowed.

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Definitions:

Cash Disbursements

The outflow of cash to pay expenses, purchase assets, or repay debts.

Floor Plan

In finance, it refers to a type of short-term loan used by retailers to purchase high-cost inventory such as automobiles. In architecture, it's the scale diagram of the arrangement of rooms in a building.

Secured Inventory Loan

A loan that is backed by the borrower's inventory as collateral to reduce the lender's risk.