a. Based on the information the amount that Intel pay Bally on August 15 is $10,400.
b. The payable amount is $10,192.
a. Intel pay Bally on August 15:
First step is to calculate the 20% trade discount applied to gross invoice
20% trade discount applied to gross invoice =($13,200-$200) × 0.2
20% trade discount applied to gross invoice = $13,000×0.2
20% trade discount applied to gross invoice=$2,600
Second step is to calculate Net price after trade discount
Net price after trade discount = ($13,200-$200) - $2,600
Net price after trade discount =$13,000-$2,600
Net price after trade discount = $10,400
b. Payable amount:
Payable amount= $10,400-( $10,400×2%)
Payable amount=$10,400-$208
Payable amount=$10,192
Inconclusion the amount that Intel pay Bally on August 15 is $10,400 and the payable amount is $10,192.
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