Question

Stacy’s Dress Shop received a $1,100 invoice dated July 13 with 3/10, 2/15, n/60 terms. On July 27, Stacy’s sent a $247 partial payment. (If more than one discount, assume date of last discount.) a. What credit should Stacy’s receive?

Answer 1

From the calculation below, credit Stacy’s should receive is $252.04; and Stacy's outstanding balance is $847.60.

How do we apply discount rate?

Note: The b. part of the question is as follows:

b. What is Stacy's outstanding balance?

From the question, we have:

3/10 implies a 3% discount on payment within 10 days.

2/15 implies a 2% discount on payment within 15 days,

n/60 implies a full payment is expected within 60 days.

Since Stacy’s sent a $247 partial payment on July 27, implies that the payment was made within 15 days.

Therefore, we have:

a. The credit Stacy’s should receive can be calculated as follows:

Credit Stacy’s should receive = Partial payment / (100% - Discount rate received) = $247 / (100% - 2%) = $252.04

b. Stacy's outstanding balance can be calculated as follows:

Stacy's outstanding balance = Invoice amount - Credit Stacy’s should receive = $1,100 - $252.04 = $847.60

Learn more about discounts here: https://brainly.com/question/3541148.

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