Asked by Wendy Reynoso on May 31, 2024

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On August 6, A&B Construction has three outstanding invoices payable to Excel Builder's Supply. Invoice 535, dated July 16, is for $3,228.56; Invoice 598, dated July 24, is for $2,945.31; and Invoice 678, dated August 3, is for $6217.69. All invoices have terms 4/10, 2/20, n/60. If A&B makes a $10,000 payment to Excel on August 6, what further payment on August 15 will settle the account? Note that Excel applies payments to the oldest invoices first.

Outstanding Invoices

Unpaid invoices that represent the amount due from buyers to sellers, not yet collected.

Terms

Conditions and stipulations under which agreements are made, including those governing loans, contracts, and sales.

  • Interpret terms of sale and calculate the required payments to settle invoices under specified terms.
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DH
Debbi HinderliterJun 06, 2024
Final Answer :
$2,127.36