Question

Scarlet Company received an invoice for $57,000.00 that had payment terms of 1/5 n/30. If it made a partial payment of $16,400.00 during the discount period, calculate the balance of the invoice.

Round to the nearest cent

Answer 1

The remaining balance on a $57,000 invoice after a $16,400 partial payment with a 1% discount is $40,764.00.

Step-by-step explanation:

The student is asking how to calculate the remaining balance on an invoice after making a partial payment within the discount period.

The terms of the invoice are 1/5 n/30, meaning there is a 1% discount if paid within 5 days, otherwise the net amount is due in 30 days.

Given the invoice amount of $57,000.00 and a partial payment of $16,400.00 made during the discount period, we need to apply the 1% discount to the partial payment and subtract it from the total invoice to find the balance.

First, calculate the discount on the partial payment:

• Discount = $16,400 × 1% = $16,400 × 0.01 = $164.00

Next, subtract the discounted partial payment from the total invoice to get the balance:

• Discounted partial payment = $16,400 - $164 = $16,236.00
• Remaining balance = $57,000 - $16,236.00 = $40,764.00

The remaining balance on the invoice after making the discounted partial payment is $40,764.00.