Scarlet Company received an invoice for $64,000.00 that had payment terms of 3/5 n/30. If it made a partial payment of $18,000.00 during the discount period, calculate the balance of the invoice.

$0.00

Round to the nearest cent

To calculate the balance of the invoice after a partial payment during the discount period, we need to first determine the discount and then apply it to the partial payment. Here are the steps:

1. **Calculate the Discount:**
   - Payment terms of 3/5 n/30 mean a 3% discount if paid within 5 days, otherwise the net amount is due in 30 days.
   - The discount on a payment of $18,000.00 is 3% of $18,000.00:
     \[
     \text{Discount} = 0.03 \times 18,000 = 540
     \]
   - Therefore, the amount paid (including the discount) is:
     \[
     \text{Amount Paid} = 18,000 + 540 = 18,540
     \]

2. **Calculate the Remaining Balance:**
   - The original invoice amount is $64,000.00.
   - The remaining balance after applying the discounted payment is:
     \[
     \text{Remaining Balance} = 64,000 - 18,540 = 45,460
     \]

So, the balance of the invoice after making a partial payment of $18,000.00 during the discount period is **$45,460.00**.

Would you like further details or have any questions?

Here are 8 related questions for further exploration:

1. How is the discount calculated for different payment terms?
2. What happens if a payment is made after the discount period?
3. How can companies benefit from offering early payment discounts?
4. How does the timing of partial payments affect the invoice balance?
5. Can multiple partial payments be made within the discount period?
6. What are the accounting entries for recording early payment discounts?
7. How are late fees calculated if the payment is made past the due date?
8. What are the advantages and disadvantages of different payment terms for businesses?

**Tip:** Always double-check the terms and conditions of payment terms on invoices to ensure accurate calculations and to avoid missing out on potential discounts.

Learn how to calculate the balance of an invoice after making a partial payment with a discount. This problem involves payment terms, discounts, and arithmetic calculations. Suitable for professionals and businesses needing to manage invoice payments effectively.

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