Q
QuestionAccounting

"On July 1, a company receives an invoice for $800 with the terms 1 / 10, net 30. On July 15, the payment should be: A. $692 B. $790 C. $792 D. $800 E. $808"
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Answer

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Step 1
: Understand the problem and identify the relevant information.

- The company received an invoice for $800 on July 1. - The payment terms are 1 / 10, net 30, which means that if the company pays within 10 days, they will receive a 1% discount, and the net amount due is $800. If not, they must pay the full amount within 30 days. - Today's date is July 15, which is after the 10 -day discount period.

Step 2
: Calculate the amount the company needs to pay if they do not take the discount.

- The full amount due is $$800$$.
- Since the company did not pay within the 10 -day discount period, they must pay the full amount.

Final Answer

The payment on July 15 should be $800.