Question

Alexis received an invoice for $4,000 that had payment terms of 3/10n/45. He 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

Answer 1

To calculate the credited amount, apply a 3% discount to the partial payment of $2,000, resulting in an amount credited of $1,940. To find the balance, subtract the amount credited from the original invoice of $4,000, leaving a balance of $2,060.

Step-by-step explanation:

The student needs to calculate the amount credited and the balance on an invoice with payment terms of 3/10n/45, after making a partial payment during the discount period. The terms indicate that there is a 3% discount if payment is made within 10 days; otherwise, the net amount is due in 45 days.

Part a: Amount Credited

Alexis made a partial payment of $2,000 during the discount period. Therefore, he is entitled to a 3% discount on that payment. The discounted amount is calculated as follows:

• 
  
• Discount = 3% of $2,000 = 0.03 × $2,000 = $60
• 
  
• Amount credited = Payment - Discount = $2,000 - $60 = $1,940

Part b: Balance on Invoice After Partial Payment

The balance on the invoice after the partial payment and discount is calculated by subtracting the amount credited from the original invoice amount:

• 
  
• Balance = Original invoice - Amount credited = $4,000 - $1,940 = $2,060