An Invoice for $7,000 Dated September 1 with Terms 2/10

question 96

Multiple Choice

An invoice for $7,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3. If the company wants to reduce the outstanding balance to $4,000, how much should they pay on September 12?

• A) $3,000
• B) $2,940
• C) $2,955
• D) $3,920
• E) $3,940

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Definitions:

Enforce

To enforce adherence to or fulfillment of a regulation, statute, or duty.

Irrevocable Will

is a will that cannot be revoked or altered once it has been finalized, ensuring that the wishes of the deceased are carried out as specified.

Trust Instrument

A legal document that sets up a trust agreement, specifying how the trust assets are to be managed and distributed.

Trustee

An individual or organization that holds or manages and invests property or assets for the benefit of a third party.