Question

What amount will reduce the amount due on an invoice of $2425 24 by $1180.77 if the terms of the invoice are 1/15, n/30 and the payment was made during the discount period? The payment amount is $ (Ro

Answer 1

The terms 1/15, n/30 mean that the buyer can take a 1% discount off the face value of the invoice if payment is made within 15 days (the discount period). After 15 days, the entire amount (net) of the invoice is due within 30 days.

Given that the payment was made during the discount period, we can calculate the amount of the discount using the original invoice amount:

Discount = 1% of $2,425.24 = $2,425.24 * 1/100 = $24.2524

Now, to calculate the amount due after the discount, subtract the discount from the original invoice amount:

Amount due after discount = $2,425.24 - $24.2524 = $2,400.9876

The question also states that $1,180.77 has already been paid. So, to calculate the remaining amount due, subtract the payment from the amount due after the discount:

Remaining amount due = $2,400.9876 - $1,180.77 = $1,220.2176

Therefore, a payment of approximately $1,220.22 will reduce the amount due on the invoice by $1,180.77, assuming the payment is made within the discount period.