Answer: amount necessary to pay the invoice in full is $ 1231.68
Working notes for the above answer is as under
We have been provided that ,
Cody’s Book Nook received an invoice dated July 27 for $1283 with terms of 4/5 EOM
Using “4/5 EOM” (the invoice is due and payable 5 days after the end of the month in which the sale occurred).
Here bill is paid within the discount date so cloudy is able to get discount
She wil get 4% discount as follow
Particular | Amount in $ |
Invoice Amount | 1283 |
Less: | |
Discount Rate 4% of 1283 |
51.32 |
amount necessary to pay the invoice in full | 1231.68 |