Question

Complete the following: (Do not round intermediate calculations. Round your final answers to the nearest cent.) Amount of invoice Terms Invoice date Actual partial payment made Date of partial payment Amount of payment to be credited Balance outstanding 650 2/10, n/60 7/10 450 7/19

Answer 1

Purchase terms are 2/10, n/60, which means 2% discount will be allowed if payment is made with in 10 days of invoice.

Invoice date = 7/10

Partial payment date = 7/19

Since payment was made with in discount period, hence 2% discount will be allowed.

Discount amount = 450 x 2/100

= $9

Amount of payment to be credited = Cash paid + Discount received

= 450+9

= $459

Balance outstanding = Amount of invoice - Amount of payment to be credited

= 650-459

= $191

Amount of Invoice	Terms	Invoice date	Actual partial payment made	Date of partial payment	Amount of payment to be credited	Balance outstanding
$650	2/10,n/60	7/10	$450	7/19	$459	$191

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