An invoice for $6,000 dated September 1 with terms 2/10, 1½/20, n/30 is received in the mail on September 3^rd. A payment of $3,000 is made on September 12^th. What is the outstanding balance? A) $3,000 B) $2,955 C) $2,940 D) $3,060 E) $3,045

Question

Quizplus · Accepted Answer

The payment of $3,000 is made within the 10-day period, qualifying for a 2% discount. Thus, $3,000 - 2% of $3,000 ($60) = $2,940 paid. The outstanding balance is $6,000 - $2,940 = $3,060, but since the payment took advantage of the discount, the actual outstanding balance is $6,000 - $3,000 = $3,000, less the discount of $60, resulting in $2,940 still owed. However, since the question asks for the outstanding balance after a payment of $3,000, and considering the discount was applied to the payment, not the balance, the correct interpretation leads to an outstanding balance of $3,000 without subtracting the discount from the remaining balance. Therefore, the correct answer reflects a misunderstanding in the explanation process, aiming to clarify the calculation mistake. The correct outstanding balance after applying the discount correctly to the payment, not the remaining balance, should be $3,000 - the discount, which was mistakenly subtracted after the payment. The correct answer should reflect the balance after payment, not considering the discount as a direct deduction from the remaining balance but as a reduction in the payment amount, leading to an initial misunderstanding in the explanation provided.

An Invoice for $6,000 Dated September 1 with Terms 2/10