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?

Well, isn't Vail a "cool" customer? Let's calculate the credit they should receive and their outstanding balance.

The terms 2/10, 1/15, n/60 mean that if Vail pays within 10 days, they receive a 2% discount, and if they pay within 15 days, they receive a 1% discount. If they don't pay within those periods, they have to pay the full invoice amount within 60 days.

Vail sent a partial payment of $485 on July 22, which is within the 10-day discount period. So, they get a 2% discount on the amount paid.

The credit Vail should receive is: $485 x 2% = $9.70.

To calculate Vail's outstanding balance, we subtract the partial payment ($485) and the credit ($9.70) from the invoice amount ($1,201):

Outstanding balance = $1,201 - $485 - $9.70 = $706.30.

So, Vail's outstanding balance with the ski shop is $706.30. Let's hope they don't "ski-p" on the payment!

To calculate the credit Vail should receive and the outstanding balance, we will need to consider the terms of the invoice and the partial payment made.

The terms mentioned are 2/10, 1/15, n/60. This means that if the payment is made within 10 days, a 2% discount can be applied. If the payment is made within 15 days, a 1% discount can be applied, and if the payment is made after 60 days, the full amount is due with no discount.

First, let's calculate the discount that can be applied:

Discount for payment within 10 days = Invoice amount * Discount rate
Discount for payment within 10 days = $1,201 * 2% = $24.02

Discount for payment within 15 days = Invoice amount * Discount rate
Discount for payment within 15 days = $1,201 * 1% = $12.01

Now, let's calculate the credit Vail should receive based on the partial payment made:

Credit = Partial payment - Discount for payment within 10 days - Discount for payment within 15 days
Credit = $485 - $24.02 - $12.01
Credit = $448.97

Finally, let's calculate the outstanding balance:

Outstanding balance = Invoice amount - Credit
Outstanding balance = $1,201 - $448.97
Outstanding balance = $752.03

Therefore, Vail should receive a credit of $448.97, and the outstanding balance is $752.03.

To calculate the credit Vail should receive, we need to determine the amount of the discount based on the terms given. The terms 2/10, 1/15, n/60 mean that a 2% discount can be taken if payment is made within 10 days of the invoice date, or a 1% discount can be taken if payment is made within 15 days of the invoice date, with the full amount due within 60 days.

First, let's calculate the amount of the discount for payment made within 10 days:
Discount = Invoice Amount * Discount Rate
Discount = $1,201 * 2% = $24.02

Next, let's calculate the amount of the discount for payment made within 15 days:
Discount = Invoice Amount * Discount Rate
Discount = $1,201 * 1% = $12.01

Now, let's calculate the credit Vail should receive. Since they made a partial payment of $485 on July 22, this payment will first be applied to the discountable portion of the invoice, which is the amount before the 15-day mark.

Credit for the discountable portion = Partial Payment - Discount for payment within 15 days
Credit for the discountable portion = $485 - $12.01 = $472.99

So, Vail should receive a credit of $472.99 for payment made within the discount period.

To calculate the outstanding balance, we need to deduct the partial payment and any discount taken from the original invoice amount.

Outstanding balance = Invoice Amount - Partial Payment - Discount for payment within 10 days
Outstanding balance = $1,201 - $485 - $24.02 = $691.98

Therefore, Vail's outstanding balance is $691.98.