Question
An accountant works for TrailBlazer. On September 5th, he received an invoice totalling $32,500 from Whirlco with payment terms 3/10, 1.5/20, n/30. He sent in
An accountant works for TrailBlazer. On September 5th, he received an invoice totalling $32,500 from Whirlco with payment terms 3/10, 1.5/20, n/30. He sent in a partial payment on September 14th to reduce their balance by $12,500 and planned to pay off the remaining balance in time to receive the 1.5% cash discount.
a. What is the amount of the partial payment made on September 14th?
b. How much money would TrailBlazer lose if they don't get the second discount?
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
To calculate the partial payment made on September 14th we first need to determine the discount avai...
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
3rd edition
77639731, 978-0077639730
