Standard Software purchases programs from Microsoft with an invoice price of $25,900 and terms of sale of 5/15, n/30. What is the net amount due on the order if a partial payment of $6,000 is made on the 15th day?

Question

Quizplus · Accepted Answer

The discount is 5% if paid within 15 days. The discount on $25,900 is $1,295, making the amount due $24,605. After a $6,000 payment, the remaining balance is $18,605. Since the payment was made on the 15th day, the discount applies to the remaining balance, resulting in $19,584.21 due.

Standard Software Purchases Programs from Microsoft with an Invoice Price