If Simmons, Inc. pays an invoice of $3,500 with terms of 3/10, n/45 on March 15, what will be the discount received?

To determine the discount received by Simmons, Inc. when paying the invoice of $3,500 with terms of 3/10, n/45, we need to break down the terms of the invoice.

The terms "3/10, n/45" mean that Simmons, Inc. is entitled to a 3% discount if they pay within 10 days of the invoice date. The "n/45" part indicates that the net amount is due in 45 days without any discount.

Since Simmons, Inc. is paying the invoice on March 15, we first need to check if this falls within the discount period. If we assume the invoice date is earlier in March, then paying by March 15 would indeed fall within the 10-day window.

To calculate the discount, we take 3% of the invoice amount of $3,500:

Discount = Invoice Amount × Discount Rate Discount = $3,500 × 0.03 = $105

Thus, the discount received by Simmons, Inc. when paying the invoice within the specified discount period is $105. This amount reduces the total payable from $3,500 to $3,395 after taking the discount into account.

Hence, the answer reflects