if an invoice is dated april 25 and has credit terms of 3/15 ,n/45 , what is the last date on which the net amount of the invoice can be paid without incurring an penalty
june 11
To determine the last date on which the net amount of the invoice can be paid without incurring a penalty, we need to understand the credit terms mentioned. The credit terms "3/15, n/45" typically refer to the following:
- The first number, "3," represents the number of days from the invoice date until the discount period expires. In this case, it means a discount of 3% can be applied if the invoice is paid within 15 days after the invoice date.
- The second number, "15," indicates the number of days within which the discounted payment must be made.
- The letter "n" signifies that the payment due in full should be made, meaning it does not have any discount applied.
- The last number, "45," denotes the total number of days allowed to make the payment without incurring any penalty.
To calculate the last date without a penalty, we consider the credit terms:
- As per the given credit terms, a 3% discount applies if the invoice is paid within 15 days of the invoice date. Thus, the discounted payment period ends on April 25 + 15 days = May 10.
- After the discount period ends, the full payment without any discount is due. Therefore, the last date to pay the net amount of the invoice without penalty is May 10 + 45 days = June 24.
In conclusion, the last date on which the net amount of the invoice can be paid without incurring a penalty is June 24.