Question

George's Glass Company received an invoice statement dated February 4 for $12,856. The sales terms were 5/10, n/30. The bill was paid on February 10. How much did thebusiness owe?$12,856.00$11,570.40$12,112.40$12,213.20None of these choices are correct.

Answer 1

To find the amount owed by the business, we proceed as follows:

-Step 1: We multiply the invoice amount by the percentage discount

$\begin{gathered} \text{Invoice amount}\times percentage\text{ discount} \\ 12,856\times\frac{5}{100} \\ \Rightarrow642.8 \end{gathered}$

Thus, $642.8

- Step 2: We then subtract the value obtained in the step above from the invoice amount

$\begin{gathered} \text{Invoice amount - 642.8} \\ 12,856-642.8 \\ \Rightarrow12,213.2 \end{gathered}$

Therefore, the business owed $12,213.20