Question

Recall that the original purchase on August 8th was for $5,200 but was reduced by a $400 credit memo, on August 12th, decreasing the total liability to $4,800. The 1% discount is applies to the adjusted $4,800 total balance owing.

True
False?

Answer 1

The claim that a 1% discount is applied to the adjusted balance of $4,800 after a credit memo reduced the original amount from $5,200 is true.

Step-by-step explanation:

The statement that the 1% discount applies to the adjusted total balance owing of $4,800 is true. When the original purchase was for $5,200 and then reduced by a $400 credit memo, the new total would indeed be $4,800. If terms of the sale offer a 1% discount for early payment, the discount is calculated based on the adjusted balance of $4,800.

Learn more about Applying Discounts