Question

On January 15, Sheridan Service received a shipment with an invoice dated January 14, terms 4/10 E.O.M., for $2592. On February 9, Sheridan Service mailed a cheque for $1392 in partial payment of the invoice. By how much did Sheridan Service reduce its debt?

Answer 1

Sheridan Service reduce its debt $1,392, now its due is $1,200.

Explanation:

Sheridan Service received a shipment on January 15, with an invoice dated January 14, terms 4/10 E.O.M.

Term written on the invoice means 4% discount if paid within 10 days or full amount is due for the payment at the End of the Month.

Invoice shipment having amount = $2,592

Partial payment of the invoice by check = $1,392

So amount due = 2,592 - 1,392 = $1,200

Sheridan Service reduce its debt $1,392, now its due is $1,200.