Question

John’s Dress Shop received an invoice dated November 8 for $1,619, with terms 3/10, 2/15, n/60. On November 23, John’s Dress Shop sent a partial payment of $715. What is the actual amount that should be credited and what is the outstanding balance?

Answer 1

John's Dress Shop sent a partial payment without discount after the 15-day period; therefore, the full payment amount of $715 is credited with no discount, and the outstanding balance is the original amount minus the payment made: $1,619 - $715.

Step-by-step explanation:

The question involves calculating the actual amount that should be credited and the outstanding balance for a partial payment made on an invoice with specific discount terms. Since John's Dress Shop received an invoice dated November 8 for $1,619 with payment terms 3/10, 2/15, n/60, this means they can take a 3% discount if they pay within 10 days, a 2% discount if they pay within 15 days, or the full amount within 60 days. The payment was made on November 23, which is after the 15-day period for any discount, so no discount applies.