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Cody received an invoice for $4,000 that had payment terms of 3/10 n/30. She made a partial payment of $2,000 during the discount period.

a. Calculate the amount credited.

Round to the nearest cent

b. Calculate the balance on the invoice after the partial payment was made.

Round to the nearest cent

User William Le
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Final answer:

Cody is credited $1,940.00 after making a partial payment of $2,000 during the discount period for an invoice with terms 3/10 n/30, resulting in a remaining balance of $2,060.00 on the invoice.

Step-by-step explanation:

The question involves calculating the amount credited and the balance on an invoice after a partial payment during the discount period provided by the payment terms.

Calculation of the Amount Credited

The payment terms 3/10 n/30 means that Cody can take a 3% discount if she pays within 10 days, otherwise the net (full) amount is due in 30 days. Since Cody made a partial payment of $2,000 during the discount period, we calculate the discount as follows:

Discount = $2,000 × (3/100)

= $60

Therefore, the amount credited to Cody's account is the partial payment minus the discount, which is $2,000 - $60 = $1,940.00.

Calculation of the Balance on the Invoice

To find the balance remaining on the invoice after the partial payment, we subtract the amount credited from the original invoice amount:

Balance = Original Invoice Amount - Amount Credited

Balance = $4,000 - $1,940

= $2,060.00.

User Rahim Dastar
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