Scarlet Company received an invoice for $79,000.00 that had payment terms of 2/5 n/30. If it made a partial payment of $17,700.00 during the discount period, calculate the balance of the invoice.

Round to the nearest cent. Jusy aplly discouny on partial payment

To calculate the balance of the invoice after making a partial payment during the discount period, we need to follow these steps:

1. **Calculate the Discount on the Partial Payment:**
   The payment terms 2/5 n/30 mean that a 2% discount is available if payment is made within 5 days. Scarlet Company made a partial payment of $17,700.00 within the discount period, so the 2% discount applies.

   \[
   \text{Discount} = 0.02 \times \$17,700.00 = \$354.00
   \]

2. **Calculate the Effective Partial Payment:**
   Subtract the discount from the partial payment to find the effective amount paid.

   \[
   \text{Effective Partial Payment} = \$17,700.00 - \$354.00 = \$17,346.00
   \]

3. **Calculate the Balance of the Invoice:**
   Subtract the effective partial payment from the total invoice amount to find the balance due.

   \[
   \text{Balance} = \$79,000.00 - \$17,346.00 = \$61,654.00
   \]

Thus, the balance of the invoice after the partial payment and discount is $61,654.00.

Would you like any further details or have any questions?

Here are 8 related questions that might expand your understanding of invoice calculations and payment terms:

1. How do you calculate the discount on a full payment made within the discount period?
2. What are the implications of not paying within the discount period?
3. How do payment terms affect a company's cash flow?
4. Can multiple partial payments be made within the discount period to receive multiple discounts?
5. How do different payment terms (e.g., 1/10 n/30) affect the discount amount?
6. What accounting entries are made to record the discount and partial payment?
7. How does the discount affect the cost of goods sold (COGS) for the purchasing company?
8. How do payment terms impact supplier relationships and credit ratings?

**Tip:** Always keep track of payment deadlines and terms to optimize cash flow and take advantage of available discounts.

Learn how to calculate the balance of an invoice after making a partial payment with payment terms 2/5 n/30. This problem involves applying a 2% discount to a partial payment of $17,700.00. Suitable for finance professionals and accounting students.

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