Maplewood Supply received a $5,420 invoice dated April 15, 2015. The $5,420 included $320 freight. Terms were 3/10, 2/30, n/60. (If more than one discount, assume date of last discount.) a. If Maplewood pays the invoice on April 27, what will it pay?

Maplewood will it pay $4,998 on April 27

Explanation:

Term 3/10, 2/30, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 and discount of 2% is available on payment of due amount after 10 days and before 30 days of sales with net credit period of 60 days.

According to given data

Sales = $5,420

Freight = $320

Sales Amount = $5,420 - $320 = $5,100

As the payment is made on 12th day after sale which falls in 30 days discount period, so 2% discount will be availed

Discount  = $5,100 x 2% = $102

Amount of payment = $5,100 - $102 = $4,998

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