Question

An invoice dated March 12 in the amount of $50,000 is received by Reliance Corporation on March 16. Cash discount terms on the invoice are 3/10, n/30. On March 16 Reliance mails a check in the amount of $8,000 as partial payment on the invoice. The outstanding balance owed on the invoice is:

Answer 1

Answer: $42,000

Step-by-step explanation: since he didn't pay the full amount on the invoice within the discount validity time, he would not be eligible for any discount. Hence amount left unpaid on the invoice = $50,000 - $8,000 = $48,000