Florida General Contractor Practice Exam

What would be the payment due for an invoice of 3,000 dated June 1 with terms of 2%, 10 days, net 30 if paid on July 10?

1. 3,060

2. 2,940

3. 3,000

4. 2,970

The correct answer is: 2,940

To determine the payment due for the invoice of $3,000 dated June 1, it’s essential to analyze the payment terms provided: 2%, 10 days, net 30. This indicates that a 2% discount is available if the invoice is paid within 10 days. The invoice due date would allow the buyer to take advantage of a discount if paid by June 11 (10 days from June 1). Since the payment in question is made on July 10, it occurs after the discount period. Therefore, the discount does not apply, and the full amount must be paid. Hence, the total amount due for the invoice remains as $3,000. While there may have been an assumption regarding penalty or late fees, it is clear that, under these standard terms, the payment is simply the original invoice amount when paid after the discount period and prior to the net due date of 30 days. The correct total, therefore, is the full invoice amount of $3,000, indicating that options suggesting amounts either greater or lesser than this original sum, or including a discount, are not applicable in this scenario.