Question

Shown is a listing of sales invoices for the most recent quarter-to-date in 2022. Why are the terms for several customers not included in the Terms column? Note: In each case the invoice showed a due date the same as the invoice date.

Rock Castle Construction Invoices for All Customers October 1 through December 15, 2022 Num Customer Amount Date Terms Due Date Net 30 Net 30 Oct 1 - Dec 15, 22 FC6 Cook, Brian:Kitchen FC 3 Smith, Lee:Patio FC2 Nguyen, Tuan:Garage FC 5 Nguyen, Tuan:Garage FC 4 Nguyen, Tuan:Garage 1093 Lew Plumbing - C:St... 1087 Roche, Diarmuid:Ga... 1088 Robson, Darci:Robs... 1076 Vitton, David:Remod... 1083 Burch, Jason:Room ... 1074 Pretell Real Estate:1... 1086 Ecker Designs:Offic... 1080 Cook, Brian:Kitchen 1098 Cook, Brian:Kitchen 1090 Pretell Real Estate: 1... 1064 Teschner, Anton: Su... 1094 Natiello, Emesto:Kit... 1070 Pretell Real Estate:1... 1073 Cook, Brian:Kitchen 1096 Natiello, Emesto:Kit.. 1066 Cook, Brian:Kitchen 1084 Abercrombie, Kristy:... 1069 Jacobsen, Doug:Kitc... 1065 Pretell Real Estate: 1... 1077 Hendro Riyadi:Rem... 1075 Cook, Brian:Kitchen 1091 Abercrombie, Kristy.... 1082 Jacobsen, Doug:Kitc... 1071 Pretell Real Estate: 1... 1081 Cook, Brian:2nd stor... 1089 Violette, Mike:Works... 1067 Teichman, Tim:Kitch... 1085 Teschner, Anton: Su... 1095 Natiello, Emesto:Kit... 1097 Robson, Darci:Robs... 1079 Melton, Johnny Dent... 1092 Campbell, Heather:... 1068 Mackey's Nursery a... 1072 Cook, Brian: 2nd stor... 1078 Pretell Real Estate:1... 5.95 12/11/2022 18.73 10/31/2022 35.65 10/01/2022 37.58 12/01/2022 43.89 11/03/2022 220.00 12/12/2022 440.00 12/01/2022 445.00 12/01/2022 700.00 11/15/2022 1.005.00 11/25/2022 1.072.50 11/15/2022 1,468.30 11/30/2022 1,636.69 11/25/2022 1.636.69 12/15/2022 1,715.00 12/10/2022 1.960.00 10/05/2022 2,080.11 12/14/2022 2.320.00 10/26/2022 2,580.00 10/30/2022 2,824.03 12/14/2022 3.100.00 10/15/2022 3.111.28 11/25/2022 3.207.75 10/23/2022 3,439.00 10/10/2022 4.223.00 11/18/2022 4,225.41 11/15/2022 4,522.00 12/10/2022 4,725.00 11/25/2022 4.948.00 10/30/2022 5,418.00 11/25/2022 5,732.23 12/05/2022 7.764.78 10/15/2022 8.305.95 11/28/2022 8,656.25 12/14/2022 12,420.98 12/15/2022 12.754.14 11/20/2022 13,900.00 12/10/2022 13,900.00 10/20/2022 14.085.30 10/30/2022 15,435.00 11/20/2022 Net 15 Net 30 Net 30 Net 30 Net 30 Net 30 Net 30 Net 15 Net 30 Net 30 Net 30 Net 30 Net 30 Net 30 Net 30 Net 30 01/10/2024 10/31/2023 10/01/2023 12/01/2023 11/03/2023 01/11/2024 12/01/2023 12/01/2023 11/30/2023 12/25/2023 12/15/2023 12/30/2023 12/25/2023 01/14/2024 01/09/2024 10/20/2023 01/13/2024 11/25/2023 11/29/2023 01/13/2024 11/14/2023 12/25/2023 11/22/2023 11/09/2023 11/18/2023 12/15/2023 01/09/2024 12/25/2023 11/29/2023 12/25/2023 02/03/2024 12/14/2023 12/13/2023 01/13/2024 12/15/2023 12/20/2023 12/25/2023 11/04/2023 11/29/2023 12/20/2023 Net 30 Net 30 Net 30 Net 30 Net 30 Net 60 Net 60 Net 15 Net 30 Net 30 Net 15 Net 15 Net 30 Net 30 Oct 1 - Dec 15, 22 176,119.19

Answer 1

From the perusal of data provided one can conclude that it is normal practice of Rock Castle construction to provide a year's time for payment from the date of invoice flat to all the customers.

Customers whose terms of payment exceed that over a year are shown in terms depending upon the terms agreed.

To better understand we can compare two cases as below :

Customer # 1097, Robson - Date of invoice is 12/15/2022 and due date is 12/15/2023 (exact a year)

Customer # 1078, Pretell - Date of invoice is 11/20/2022 and due date is 12/20/2023, a Year completes on 11/20/2023 from the date of invoice since the due date is 30 days after a year the Terms shows as Net 30.