Vail Ski Shop received a $1,201 invoice dated July 8 with 2/10, 1/15, n/60 terms. On July 22, Vail sent a $485 partial payment.
(If more than one discount, assume date of last discount)
a. What credit should Vail receive?
b. What is Vail’s outstanding balance?
1 answer:
A)
100%-1%=99%=0.99
485/0.99=489.9
489.9 is the amount of payment to be credited
B)
1,201−489.9=711.1 is the balance outstanding
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