Jack Williams works in a very active department called purchasing. He works with store managers, marketing, and supply companies. His job is to have the right product, in the right amount, at the lowest cost, where and when its needed. With more than 1000 stores, that is a very tough job! Of course, there are others that work with him in the department.

In early September, Williams placed an order with one vendor for products, having a combined list price of $27,393. The vendor offered trade discounts of 20/10/10. The invoice arrived through the computer system the next day. It was dated September 4, had terms of 3/15n30, and showed a shipping charge of $748.38.

5. What would the impact be if the vendor does not pay the invoice until Dec 2? Explain.