Asked by Hunter Roberts on Jul 14, 2024
Verified
An invoice for $25,000 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. A payment of $14,000 was made on April 14. How much was credited to the account?
A) $14,280.00
B) $14,420.00
C) $14,432.99
D) $14,285.71
E) $14,000.00
ROG
Rate of Growth, representing the percentage increase in a particular variable over a specified period, often used in economic and financial contexts.
Account
A record or statement that keeps track of financial transactions or an arrangement with a bank to deposit, withdraw, or manage money.
Invoice
A document issued by a seller to a buyer that lists the products or services provided and specifies the amount owed for them.
- Determine the balance credited to an account following partial payments and discounts.
Verified Answer
CT
cristian torres diazJul 19, 2024
Final Answer :
D
Explanation :
The terms 3/10, 2/20, n/30, ROG indicate that a discount is available if the invoice is paid within certain days from the receipt of goods (ROG). Since the goods were received on April 3, the payment on April 14 is within the 10-day period for a 3% discount. Therefore, the payment of $14,000 is more than the discounted amount due. To find the credited amount: $14,000 / (1 - 0.03) = $14,000 / 0.97 = $14,285.71.
Learning Objectives
- Determine the balance credited to an account following partial payments and discounts.