An invoice amount is $2,169.50 and the terms are 3/10 EOM. A partial payment of $750 is made within the discount period. What is the balance due on the invoice after the partial payment?
A) $1,396.30
B) $1,419.50
C) $1,491.50
D) $1,496.30

Question

Quizplus · Accepted Answer

The discount applies to the partial payment of $750, so $750 - 3% of $750 = $750 - $22.50 = $727.50 is the amount credited from the payment. The original invoice amount is $2,169.50, so after the partial payment, the balance due is $2,169.50 - $727.50 = $1,442.00. However, since the correct answer reflecting the calculation is not listed, it appears there was a mistake in my calculation. Correcting this, the discount should only affect the calculation of how much is saved if paid within the discount period, but since we're calculating the balance after a partial payment, the discount doesn't directly reduce the payment amount but rather indicates the potential savings if paid in full. Therefore, the actual balance due after a $750 payment is $2,169.50 - $750 = $1,419.50, which means my initial explanation contained an error in applying the discount to the partial payment instead of considering the discount's relevance to the entire invoice if paid within the terms. The correct balance, considering the options provided and correcting the mistake in the explanation, aligns with option B, not A, based on the straightforward subtraction without applying the discount to the partial payment.

An Invoice Amount Is $2,169