Math Problem Statement
Calculate the credit given for the partial payment and the net amount due on the invoice (in $). (Round your answers to the nearest cent.) Amount of Invoice Terms of Sale Partial Payment Credit for Partial Payment Net Amount Due $5,998.20 4/15, n/60 $2,500 $ $
Solution
We have an invoice for $5,998.20 with payment terms of 4/15, n/60, and a partial payment of $2,500.
Step 1: Calculate the Discount Rate
The terms "4/15, n/60" mean that if payment is made within 15 days, a 4% discount is applied. After 15 days, the net amount is due in 60 days with no discount.
- The discount is 4% of the invoice amount.
Step 2: Apply the Partial Payment to the Invoice
First, let's determine how much credit is given for the partial payment of $2,500 if it qualifies for the discount.
- The discount rate is 4%, so the amount of credit for the partial payment is:
So, the credit given for the partial payment is $2,600.
Step 3: Calculate the Net Amount Due
Now, subtract the credit from the original invoice amount to find the net amount due.
Thus, the net amount due is $3,398.20.
Final Answer:
- Credit for Partial Payment: $2,600
- Net Amount Due: $3,398.20
Would you like any further details or explanations?
Here are 5 related questions:
- How would the terms of sale change if the discount were 2/10, n/30?
- What happens if the payment is made after 15 days but before 60 days?
- How do you calculate the interest if the payment is late?
- How is the partial payment applied if no discount is taken?
- How do you handle multiple partial payments on an invoice?
Tip: When calculating discounts, always apply the discount to the payment before subtracting from the total!
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Math Problem Analysis
Mathematical Concepts
Percentage
Discount Calculation
Subtraction
Formulas
Credit for Partial Payment = Partial Payment × (1 + Discount Rate)
Net Amount Due = Original Invoice Amount - Credit for Partial Payment
Theorems
-
Suitable Grade Level
Grades 9-12
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