Question

You purchase 11 pallets of tile on account at a cost of $300 per pallet with a 15% contractor discount. You will pay in four equal installments. How much will the entry for the first installment payment be?

Answer 1

The entry for the first installment payment will be: $701.25.

Step-by-step explanation:

First, you can calculate the price per pallet after the discount is applied by calculating 15% of the price and subtracting that amount from the price:

$300*15%=45

$300-$45=$255

Now, you can multiply the price with the discount for the number of pallets puchased to find the total cost:

$255*11=$2,805

Now, you have to divide the total amount by four as you will pay in four equal installments:

$2,805/4=$701.25

According to this, the answer is that the entry for the first installment payment will be: $701.25.