A Certain Canadian Company Received an Invoice Dated March 20

question 54

Essay

A certain Canadian company received an invoice dated March 20 from their Cambodian supplier for the following shipment of goods that they received on April 1.
The terms of the invoice stated 4/20, n/45 ROG and all items are subject to trade discounts of 15%, 5%.
a) What is the last day of the discount period?
b) What is the amount due if the invoice is paid in full on April 19?
c) If only a partial payment is made on the last day of the discount period, what amount is due to reduce the outstanding balance to $25 000.00?

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Definitions:

Mechanical Test

A method or procedure used to evaluate the mechanical properties of materials, components, or systems.

Liquidated Damages

The stipulation by the parties to a contract of the sum of money to be recovered by the aggrieved party in the event of a breach of the contract by the other party.

Consequential Damages

Losses that arise not directly from a breach of contract but as a foreseeable result of the breach, requiring compensation.

Express Condition

A clearly stated and explicit requirement within a contract that must be satisfied for contractual obligations to be fulfilled.