Scarlett Linens Offers Credit with Terms of 3/15, Net 30

question 29

Multiple Choice

Scarlett Linens offers credit with terms of 3/15, net 30 to its customers. These terms indicate that Scarlett allows its customers to take a:

• A)15 percent discount from the total invoice price if payment is made on or before Day 30 of the billing cycle; after that, only a 3 percent discount is available.
• B)30 percent discount from the total invoice price if payment is made on or before Day 15 of the billing cycle; after that, only a 3 percent discount is available.
• C)3 percent discount from the total invoice price if payment is made on or before Day 15 of the billing cycle; otherwise, the entire bill is due by Day 30.
• D)15 percent discount from the total invoice price if payment is made on or before Day 3 of the billing cycle; otherwise, the entire bill is due by Day 30.
• E)30 percent discount from the total invoice price if payment is made on or before Day 3 of the billing cycle; otherwise, the entire bill is due by Day 15.

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Definitions:

Low Life Expectancy

A statistical measure indicating the average period an individual is expected to live, which is shorter than the typical lifespan due to various factors like disease, lifestyle, or environment.

Poverty

A condition where individuals or communities lack the financial resources and essentials for a minimum standard of living.

Social Distribution

The way in which wealth, income, and resources are spread across society or amongst demographics within a community.