**Exercise Instructions:**Complete the following (If more than one discount, assume date of last discount): (Use Table 7) (Assuming February will have 28 days.)| Invoice | Date goods are received | Terms | Last day of discount period | Final day bill is due (end of credit period) ||----------|-------------------------|----------------|-----------------------------|---------------------------------------------|| June 10 | | 2/10, 1/30, n/60| | |**Explanation:**In this exercise, you are required to complete a table based on the payment terms provided. The terms "2/10, 1/30, n/60" indicate the following:- **2/10**: A 2% discount is available if the invoice is paid within 10 days.- **1/30**: A 1% discount is available if the invoice is paid within 30 days.- **n/60**: The net amount is due within 60 days.The columns for "Last day of discount period" and "Final day bill is due (end of credit period)" need to be calculated and filled out based on the terms and the date the goods are received.

The time between the final day that the discount terms are still in effect and the date when the invoice is typically due is known as the discount period.The invoice date is June 10 and the last discount period is 30 days1) The last day of discount period= June 10 + 30 Days = July 10It is the period of time wherein, cash discount is provided to a customer in order to make decreased cash payment. "n/60" denotes that if the consumer did not make payment of (full) invoice amount within the specified number of days to get discount, then the net amount is due within 60 days subsequent to the sales invoice date.2) The final bill day dueJune 10+60 Days=August 09Last day discount period is July 10 Final day bill due is August 099

Answered: Complete the following (If more than…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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PLEASE SHOW ALL WORK You purchase goods on an invoice dated February 5 of a leap year, with terms of 5/10-90X. Calculate the last day of the discount period. The discount period ends 100 days (10 + 90 = 100) after the date of the invoice. February 5 is day 36.
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Complete the following (If more than one discount, assume date of last discount): (Use Table 7.1) (Assuming February will have 28 days.) Invoice June 10 Date goods are received Terms 2/10, 1/30, n/60 Last day of discount period Final day bill is due (end of credit period)