Question

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 shop sent a partial payment of $750. The actual amount that should be credited is

Answer 1

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

750/0.99 = 757.58 from the balance, and 1400.00 - 757.58 = 642.42 is due by day 60.

Answer 2

Answer:

The actual amount that should be credited is 757.57.

Step-by-step explanation:

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

This means 2% discount on payment within 10 days

1% discount on payment within 15 days

of full payment within 60 days.

Joanne sent a partial payment of $750 on August 8th. that is within 15 days, so she got the discount of 1% on her payment.

Let the actual amount was paid be x

99% of x = 750

$\frac{99}{100}$ x = 750

x = $\frac{750}{0.99}$ = 757.57

The actual amount that should be credited is 757.57.