A $7,350 Invoice Dated August 3 Has Payment Terms of 4/10

question 45

Multiple Choice

A $7,350 invoice dated August 3 has payment terms of 4/10, 2/30, n/60. If the invoice is paid on August 20 how much must the payment be?

• A) $7,497
• B) $6,832
• C) $6,615
• D) $7,056
• E) $7,203

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Definitions:

Financial Statement

Documented records that outline the financial activities and condition of a business, individual, or other entity.

LIFO Reserve

The difference between the cost of inventory calculated under the LIFO method and its cost calculated under the FIFO method.

FIFO Firms

Companies that apply the First-In, First-Out method in their inventory management, recognizing the oldest inventory items as the first sold.

Investors

People or organizations that invest funds anticipating financial profits in return.