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Question 7.3.4: An invoice from Cellular Products is dated May 18 and offers......

An invoice from Cellular Products is dated May 18 and offers terms of 4 / 10, 3 / 25, 1 / 40, n / 60. Find (a) the three final dates for each cash discount and (b) the net payment date.

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(a) The three final cash discount dates are

4% if paid by May 28         10 days from May 18

3% if paid by June 12          25 days from May 18

1% if paid by June 27         40 days from May 18

(b) The net payment date is July 17 (20 days beyond the last cash discount date of June 27).

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