Vail Ski Shop received a $1,203 invoice dated July 10 with 4/10, 3/15, n/60 terms. On...

Vail Ski Shop received a $1,203 invoice dated July 10 with 4/10, 3/15, n/60 terms. On July 24, Vail sent a $487 partial payment.

a. What credit should Vail receive? (Round your answer to the nearest cent.)
b. What is Vail’s outstanding balance? (Round your answer to the nearest cent.)

Solutions

Expert Solution

Answer a.

Vail purchased goods with invoice value of $1,203 with credit term of 4/10, 3/15, n/60 on July 10. Vail made a partial payment of $487 on July 24.

Vail made this payment in 14 days; hence he is eligible for a discount of 3%

Amount Paid = Invoice Value of Payment * (1 - Discount Rate)
$487 = Invoice Value of Payment * (1 - 0.03)
$487 = Invoice Value of Payment * 0.97
Invoice Value of Payment = $502.06

Answer b.

Outstanding Balance = $1,203.00 - $502.06
Outstanding Balance = $700.94

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

A company received an invoice for $1734.68 dated October 9 with terms 6/15, 2/30, n/60. (a)...

A company received an invoice for $1734.68 dated October 9 with terms 6/15, 2/30, n/60. (a) If the invoice is paid on October 20, how much is to be paid? (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) (b) If the invoice is paid on November 6, how much is to be paid? (Round the final answer to the nearest cent as needed. Round all intermediate values to...

A company received an invoice for $3904.85 dated June 14 with terms 6/15, 2/30, n/60. (a)...

A company received an invoice for $3904.85 dated June 14 with terms 6/15, 2/30, n/60. (a) If the invoice is paid on June 20, how much is to be paid? (b) If the invoice is paid on July 11, how much is to be paid? (c) If the invoice is paid on August 10, how much is to be paid?

1. A company received an invoice for $3904.85 dated June 14 with terms 6/15, 2/30, n/60. ...

1. A company received an invoice for $3904.85 dated June 14 with terms 6/15, 2/30, n/60. (a) If the invoice is paid on June 20, how much is to be paid? Round the final answer to the nearest cent as needed. (b) If the invoice is paid on July 11, how much is to be paid? Round the final answer to the nearest cent as needed. (c) If the invoice is paid on August 10, how much is to be...

4. An invoice for $3500 dated July 17th, terms 2/10, E.O.M, is paid on August 10....

4. An invoice for $3500 dated July 17th, terms 2/10, E.O.M, is paid on August 10. What is the amount paid? 5. Mike received a payment of $807.50 from Andrew on October 7 on an invoice of $ 2731.75 dated September 27, terms 5/10. (draw a little chart) (i) How much does Mike credit Andrew’s account for the payment? (ii) How much does Mike still owe on the invoice 6. Turf has received an invoice of $ 1005.00 dated June...

Merchandise with an invoice price of $3,600 was purchased on February 3, terms 2/15, n/60. The...

Merchandise with an invoice price of $3,600 was purchased on February 3, terms 2/15, n/60. The company uses the gross method to record purchases and a perpetual inventory system. The entry to record a cash payment of this purchase obligation on February 17 is: Debit Accounts Payable $3,528; credit Cash $3,528. Debit Accounts Payable $3,600; credit Cash $3,600. Debit Accounts Payable $3,528; debit Discounts Lost $72; credit Cash $3,600. Debit Accounts Payable $3,600; credit Merchandise Inventory $72; credit Cash $3,528....

Appliances received an invoice dated January 14th with terms 2/10 E.O.M. for the items listed below....

Appliances received an invoice dated January 14th with terms 2/10 E.O.M. for the items listed below. 4 refrigerators at $950 each less 20% and 4% 3 dishwashers at $719 each less 16 1/3%, 12.3%, and 3% (a) What is the last day for taking the cash discount? (b) What is the amount due if the invoice is paid on the last day for taking the discount? (c) What is the amount of the cash discount if a partial payment...

Assume you have received an invoice dated April 12, 2020 for $15,670.00 with terms of 2/10/n30....

Assume you have received an invoice dated April 12, 2020 for $15,670.00 with terms of 2/10/n30. How much will you pay, assuming you will send payment on Monday, April 20, 2020.

An invoice for $2100, dated February 2, has terms 2/15, 1/30, n/90. If a $670 payment...

An invoice for $2100, dated February 2, has terms 2/15, 1/30, n/90. If a $670 payment was made on February 15, what payment on March 1st will settle the account? Calculate your answer in dollars to two decimal places. Do not enter the $ sign

CASH DISCOUNT 6. A manufacturer sends an invoice dated Nov. 1 with terms 2/10, n/30 in...

CASH DISCOUNT 6. A manufacturer sends an invoice dated Nov. 1 with terms 2/10, n/30 in the amount of $950. If the invoice is paid on or before Nov. 11, what amount is paid? If you don’t take advantage of the discount and the invoice is paid by Dec. 1, what amount is paid?

Hudson's Bay received an invoice dated July 13 from Nygard International in the amount of $206,731.75....

Hudson's Bay received an invoice dated July 13 from Nygard International in the amount of $206,731.75. The terms are 2/10, 1/20, n/30. If Nygard receives full payment on August 1, what amount is paid?

Subjects