Outdoor World buys plastic pools from a supplier with an invoice amount of $19,5

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Goelnag

Mathematics

Description

Outdoor World buys plastic pools from a supplier with an invoice amount of $19,500. The terms of sale are 5/10, n/30. The retailer sent a partial payment of $8,700 on the discount date. What is the net amount still due?

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Explanation & Answer

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Partial Payment Credit = Partial Payment/ ( 100- discount rate) = 8700 /( 100-5) =8700/95% = 8700/0.95
= 9157.89


balance due = $ 19500 - 9157.89 = $10,342.11

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