An Invoice Dated May 12, Terms: 5/10, N/30 for $3000

question 87

Essay

An invoice dated May 12, terms: 5/10, n/30 for $3000.00 was received by Bruce Distributors.
a) What is the last day of the discount period?
b) What is the amount due if the invoice is paid on June 5?
c) What is the amount due if the invoice is paid on May 20?

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Definitions:

Illegality

The quality or condition of being contrary to law or forbidden by law.

Breach Of Contract

The violation of any term of a contract without a legitimate legal excuse, which allows the other party to the contract to seek legal remedies.

Recovery

The process of regaining possession or control of something lost or taken away, or the return to a normal state of health, mind, or strength.

Dishonor

The refusal or inability to accept or pay a bill of exchange, promissory note, or other credit instrument when due.