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?

Answer 1

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

Answer 2

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?