The answer below is wrong - the teacher underline partial payment!!!! Please rework problem - Susanne purchased merchandise with a net price of $347,500 with terms of sale of 4/15, n30. He makes a $15,000 partial payment on day 14. Find the outstanding balance due at the end of credit period. check_circle Expert Answer thumb_up thumb_down Step 1 Formula: Outstanding balance due at the end of credit period = Total Purchase price - Cash paid Step 2 Outstanding balance due at the end of credit period = Total Purchase price - Cash paid = 347500 - 15000 - ( 15000 x 4 % ) = $ 332500 - 600 = $ 331900 ** Credit terms is 4 / 15, as partial amount paid on 14th day so 4 % discount is calculated on the 15000 amount. ** If not looking for the same kindly repost with the full question.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The answer below is wrong - the teacher underline partial payment!!!! Please rework problem -

Susanne purchased merchandise with a net price of $347,500 with terms of sale of 4/15, n30. He makes a $15,000 partial payment on day 14. Find the outstanding balance due at the end of credit period.

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Expert Answer

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Step 1

Formula:

Outstanding balance due at the end of credit period = Total Purchase price - Cash paid

Step 2

Outstanding balance due at the end of credit period = Total Purchase price - Cash paid

= 347500 - 15000  - ( 15000 x 4 % )

= $ 332500 - 600

= $ 331900

** Credit terms is 4 / 15, as partial amount paid on 14th day so 4 % discount is calculated on the 15000 amount.

** If not looking for the same kindly repost with the full question.

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