Question

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?

Answer 1

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