Jones Advertising Agency received a $3,000 invoice dated June 8. Terms were 2/10, 1/15, n/60. On June 22 Jones Advertising sent a $1,600 partial payment. What credit should Jones Advertising receive? What is Jones's outstanding balance? Round to the nearest cent.

Question

Quizplus · Accepted Answer

Divide the partial payment by the complement of the discount rate, $1,600, divided by .99 = $1,616.16. Calculate the outstanding balance by subtracting the discount from the invoice amount; $3,000 - $1,616.16 = $1,383.84.

Jones Advertising Agency Received a $3,000 Invoice Dated June 8