Well, isn't Vail a "cool" customer? Let's calculate the credit they should receive and their outstanding balance.
The terms 2/10, 1/15, n/60 mean that if Vail pays within 10 days, they receive a 2% discount, and if they pay within 15 days, they receive a 1% discount. If they don't pay within those periods, they have to pay the full invoice amount within 60 days.
Vail sent a partial payment of $485 on July 22, which is within the 10-day discount period. So, they get a 2% discount on the amount paid.
The credit Vail should receive is: $485 x 2% = $9.70.
To calculate Vail's outstanding balance, we subtract the partial payment ($485) and the credit ($9.70) from the invoice amount ($1,201):
Outstanding balance = $1,201 - $485 - $9.70 = $706.30.
So, Vail's outstanding balance with the ski shop is $706.30. Let's hope they don't "ski-p" on the payment!