Question

An invoice dated September 30 in the amount of​ $75,000.00 was received by Info Systems on October 5. Cash discount on the invoice was​ 2/10, 1/15,​ N/30. On October 5 Info Systems mailed a check in the amount of​ $15,000.00 as a partial payment on the invoice. The outstanding balance owed after the payment was​ _______.

Answer 1

Invoice dated September 30. amount = $75000

Payment of $15000 made on October 5

Payment made within 10 days, so discount = 2%

Amount discharged including discount = Amount paid + Amount paid * Discount % /(1-Discount%)

= 15000 + 15000*2%/(1-2%)

= 15000+306.12

= $15306.12

outstanding balance = Invoice amount - Amount discharged

75000 - 15306.12

=$59693.88

So outstanding balance owed after payment of $15000 is $59,693.88