Divide the partial payment by 100% - the cash discount rate. Then subtract that answer from the net price. It will look like this.
7,400/100% - 3%= 7,400/97%
7,400/.97= 7528.865= 7528.87
27,700 - 7528.87= 20071.13
The answer is $20,071.13
Ace Formalwear buys tuxedos from a supplier and has an invoice amount of $27,700. The terms of the sale are 3/20, n/30. If Ace sends a partial payment of $7,400 on the discount date, what is the net amount still due?
2 answers
Ace Formalwear buys tuxedos from a supplier and has an invoice amount of $27,700. The terms of the sale are 3/20, n/30. If Ace sends a partial payment of $7,400 on the discount date, what is the net amount still due?