Please help:
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:

$8,247.42

$41,752.58

$8,240.00

$41,760.00

None of these

Question

Please help:
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:
		
$8,247.42
		
$41,752.58
		
$8,240.00
		
$41,760.00
		
None of these

amistre64 · Answer

we are essentially looking for how much the payment covers ....

amistre64 · Answer

8000 is worth more than 8000,  by 3% more

amistre64 · Answer

partial credit = partial payment/(100% - discount%)