Question:
On December 28, 2012 Piedmont Supply Co. ships $155,000 of merchandise by common carrier to the Maxwell Company. The terms of the sale are 3/15, n/45, FOB destination. It takes 5 days for the merchandise to arrive at Maxwell Company. Both Piedmont Supply Co. and Maxwell Company have December 31 year-ends.
What is the available sales/purchase discount? When is it available? If the discount is not taken, the invoice must be paid by what date?