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Aspire Industries received an invoice for $2,000 on March 10th and then another invoice on March...

Aspire Industries received an invoice for $2,000 on March 10th and then another invoice on March 31st for $5,000. Both invoices have terms 3/10, n/30. Aspire sent in a cheque for a payment of $1,000.00 on March 19th. (a) What is the outstanding balance on the first invoice after the March 19th payment? (b) If the final payment is made on April 15th, what is the amount of the cheque that needs to be sent in?

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Answer #1

a)   Outstanding balance for the First Invoice after 19th March Payment = $ 1000

Note ; No Discount shall be received as full Invoice amount is not settled.

b) Final Payment on 15th April

Cheque amount​​​​​​ = $1000 + $ 5000 = $ 6000

Note : No Discount shall be received for Second Invoice as payment is settled after Discount period. And for first Invoice as per terms, amount should be settled on Or before 9th April, but Invoice is settled on 15th April, interest on first Invoice outstanding payment may be levied by Creditor.

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