Asked by Danalakota Santhosh on Jun 14, 2024

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An invoice for $35,000 dated March 15 with terms 3/10, 2/20, n/30, ROG was received in the mail on March 18. The shipment of goods was received on April 3. What payment April 14 would reduce the outstanding balance to $25,000?

A) $9,700
B) $10,000
C) $9800
D) $10,200
E) $10,300

Outstanding Balance

The amount of money that is still owed or due on a financial account or loan.

Invoice

A document issued by a seller to a buyer that lists goods or services provided along with their costs, signifying an obligation to pay.

Payment

The act of giving money in exchange for goods, services, or to fulfill an obligation.

  • Compute the amounts due to achieve targeted outstanding balance objectives.
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PS
putri safiraJun 21, 2024
Final Answer :
C
Explanation :
The terms 3/10, 2/20, n/30, ROG indicate that discounts are available if payment is made within certain days after the receipt of goods (ROG). Since the goods were received on April 3, the discounts are no longer applicable by April 14, making it a net payment situation (n/30). To reduce the outstanding balance to $25,000, the payment made must cover the difference between the original amount and the desired balance, which is $35,000 - $25,000 = $10,000. However, since no discounts apply, the full payment to reduce the balance to $25,000 is exactly $10,000, making option C ($9,800) incorrect and the correct answer not listed among the options provided.