Invoice: $600
Terms: 2/10, 1/20, n/30
Invoice date: May 5
Payment amount: $400
Date paid: May 17

Name: Invoice: $600 Terms: 2/10, 1/20, n/30 Invoice date: May 5 Payment amount: $400 Date paid: May 17
Brand: Quizplus
Rating: 5.0 (54 reviews)

Question

Quizplus · Accepted Answer

Since the payment was made during the second discount period, use the discount rate of 1%. Divide the payment of $400 by .99 to get the amount credited equal to $404.04, and then subtract the amount credited from the invoice amount to get $195.96 as the balance.

Invoice: $600 Terms: 2/10, 1/20, N/30