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3 years ago

7. Given the following information, calculate, in order, the amount credited and the outstanding balance.

Mathematics

1 answer:

svp [43]3 years ago

5 0

Answer:

C. $824.74, $175.26

Step-by-step explanation:

1) Amount Credited

The formula to calculate the amount credited =

Amount paid ÷ ( 100% - Discount)

Discount is given in the question as 3/10

Where 3 = Discount rate

Amount paid = $800

Amount credited = 800/( 100% - 3%)

= 800/ 97%

= 800/ 0.97

= $824.74

b) Outstanding balance = Invoice - Amount credited

Invoice = $1000

Amount credited = $824.74

Outstanding balance = $1000 - $824.74

= $175.26

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2 years ago

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