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Skrd Ltd received an invoice for $2,874 that had payment terms of 6.5/10, n/30. If a partial payment of $650 is made during the discount period, what is the remaining balance?

a. $1,966
b. $2,224
c. $2,224.60
d. $2,224.75

1 Answer

5 votes

Final answer:

The calculation shows that after applying a 6.5% discount to the partial payment of $650, the remaining balance on the invoice should be $2,266.25. No options provided exactly match this result, suggesting a potential error in the question or the answer choices.

Step-by-step explanation:

The student asked about the remaining balance after a partial payment is made on an invoice with specific payment terms. The invoice amounts to $2,874 with payment terms of 6.5/10, n/30. If a payment of $650 is made during the discount period, we first need to determine what the discount is and then apply it to this partial payment.

The terms 6.5/10, n/30 mean that a discount of 6.5% is available if payment is made within 10 days; otherwise, the net amount is due within 30 days. On a partial payment of $650, the discount would be 6.5% of $650, which is $650 × 0.065 = $42.25. Therefore, the reduced payment is $650 - $42.25 = $607.75.

Subtracting this reduced payment from the total invoice amount, we have $2,874 - $607.75 = $2,266.25. None of the provided options are correct based on our calculation, but the closest to the correct value of $2,266.25 might be a typographical error. The student should recheck the available answers or the question for any potential mistakes.

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