MHB What Is the Remaining Balance After a Partial Discounted Payment?

[ammanda]

Here is the second question.

Question 2:

Ace Formal wear buys tuxedos from a supplier and has an invoice amount of \$27,700. The terms of the sale are 3/20, n/30. If Ace sends a partial payment of \$7,400 on the discount date, what is the net amount still due?

 

[Wilmer]

Here is the second question.

Question 2:

Ace Formal wear buys tuxedos from a supplier and has an invoice amount of \$27,700. The terms of the sale are 3/20, n/30. If Ace sends a partial payment of \$7,400 on the discount date, what is the net amount still due?

Looks like you'll get a discount of 7400 * .03 = 222,
so you'll owe 27,478 on due date...