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mixer [17]
3 years ago
5

Joanne's Dress Shop received an invoice dated July 25 for $1,400, with terms of 2/10, 1/15, n/60. On August 8, Joanne's Dress Sh

op sent a partial payment of $750. The actual amount that should be credited is:
Mathematics
1 answer:
ss7ja [257]3 years ago
5 0

The actual amount that should be credited is $757.58.

<u>Solution:</u>

Given that,

2% Discount if paid in 10 days.

1% Discount if paid in 15 days, (but greater that 10 days)

Net due in 60 days.

That is,

\bold{1400\times0.98 = 1372} will close the acount on days 1-10

\bold{1400\times0.99 = 1386} will close the acount on days 11-15

And August 8 is Day 15 and falls under the 1% discount rule.

Therefore, we have to divide the partial payment by the complement of the discount rate.

\bold{\Rightarrow\frac{750}{0.99} = 757.58} from the balance, and \bold{1400.00 - 757.58 = 642.42} is due by day 60.

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