Vail Ski Shop received a $1,201 invoice dated July 8th wiht 2/10, 1/15, n/60 terms. On July 22, Vail sent a $485 partial payment. What credit should Vail receive? What is Vail's outstanding balance?

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To determine the credit Vail should receive and their outstanding balance, we need to calculate the total amount due and determine how much remains unpaid after the partial payment.

Let's break down the invoice and the terms given:

Invoice amount: $1,201
Terms: 2/10, 1/15, n/60

The terms "2/10" mean that if Vail pays the invoice within 10 days, they can take a 2% discount. The terms "1/15" mean they can take a 1% discount if they pay within 15 days. The term "n/60" means the balance will be due in full within 60 days.

First, let's calculate the amount Vail can save if they take advantage of the discount:

2% of $1,201 = $24.02 (discount if paid within 10 days)
1% of $1,201 = $12.01 (discount if paid within 15 days)

Now, the partial payment of $485 was made on July 22. We need to determine the number of days between July 8 (invoice date) and July 22 (payment date):

July 22 - July 8 = 14 days

Since the payment was made within 15 days, Vail qualifies for the 1% discount of $12.01. So, Vail's credit will be $485 - $12.01 = $472.99.

To calculate the outstanding balance, we need to subtract the credit received ($472.99) from the original invoice amount ($1,201):

Outstanding balance = $1,201 - $472.99 = $728.01

Therefore, Vail should receive a credit of $472.99, and their outstanding balance is $728.01.