Receivables Management Quiz

A company offers a 3/15, net 90 cash discount on a sale of $30,000. How much will the company receive if the customer pays within the discount period?

• $29,100

• $30,000

• $28,500

• $29,500

Answer explanation

The cash discount is 3% on $30,000. Calculating 3% gives $900. Subtracting this from the total sale amount: $30,000 - $900 = $29,100. Therefore, if the customer pays within the discount period, the company will receive $29,100.

A company offers a 5/10, net 30 cash discount. What is the discount percentage offered on purchases if paid within 10 days?

• 2%

• 5%

• 3%

• 10%

Answer explanation

The cash discount of 5/10 means a 5% discount is offered if the payment is made within 10 days. Therefore, the correct answer is 5%.

If a company offers 5/10, net 30 terms on an invoice of $20,000, when should the customer pay to receive the discount?

• By the 10th day

• By the 15th day

• By the 30th day

• By the 5th day

Answer explanation

To receive the 5% discount, the customer must pay within 10 days of the invoice date. Therefore, the correct answer is 'By the 10th day'.

If a company offers 3/15, net 90 terms on a $50,000 sale, and the customer does not take advantage of the discount, how much will they pay after the 15-day period?

• $50,000

• $48,500

• $49,000

• $47,500

Answer explanation

The terms 3/15, net 90 mean a 3% discount is available if paid within 15 days. Since the customer does not take the discount, they will pay the full amount of $50,000 after the 15-day period.

A customer buys goods worth $25,000 and pays within the discount period of 2/15, net 60. What is the discount amount?

• $500

• $750

• $600

• $1,000

Answer explanation

The discount is calculated as 2% of $25,000. Thus, 0.02 x 25,000 = $500. d.

If a company offers 5/10, net 30, and the customer purchases goods for $18,000, how much will the company receive if the customer pays on the 7th day?

• $17,100

• $18,000

• $17,200

• $17,500

Answer explanation

The customer pays within the discount period (5% off for payment within 10 days). The discount on $18,000 is $900 (5% of $18,000), so the company receives $17,100 ($18,000 - $900).

A company has a net 60 days payment term for its sales. If a customer buys goods on January 1, by what date is the payment due?

• March 1

• February 28

• February 15

• March 31

Answer explanation

The payment is due 60 days after the purchase on January 1. Adding 60 days brings us to March 2, but since February has only 28 days in a non-leap year, the due date is March 1.