Question

An invoice dated March 12 in the amount of $50,000 is received by Reliance Corporation on March 16. Cash discount terms on the invoice are 3/10, n/30. On March 16 Reliance mails a check in the amount of $8,000 as partial payment on the invoice. The outstanding balance owed on the invoice is:

Answer 1

$42,000

Answer 2

oops sorry, that's not entirely true. if Reliance pays the bill on or before the 22 of March, then the outstanding balance is $40,500. they would receive a 3% discount for paying the invoice in full in 10 days. if they made the remaining payment(s) after March 22, then $42,000 is the outstanding balance.