Question
You place an order for 1,000 units of inventory at a unit price of \( \$ 48 \). The supplier offers terms of \( 3 / 30 \), net 40 . a-1. How long do you have to pay before the account is overdue?
Ask by Floyd Daniel. in the United States
Feb 24,2025
Upstudy AI Solution
Tutor-Verified Answer
Answer
You have 40 days to pay before the account is overdue.
Solution
The supplier's payment terms of 3/30, net 40 mean that if you pay within 30 days, you qualify for a 3% discount; otherwise, the full amount is due within 40 days. Therefore, you have 40 days to pay before the account is considered overdue.
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Simplify this solution Beyond the Answer
You have 40 days to pay the invoice before it's considered overdue since the terms state "net 40." This means that the total amount due must be paid within 40 days from the invoice date to avoid any late fees or penalties. On top of that, if you pay within 30 days, you can take advantage of the 3% discount! This could save you a significant amount on the total order, making it a smart financial move to consider paying within that window for a better deal.
