Ace Formalwear buys tuxedos from a supplier and has an invoice amount of $27,700. The terms of the sale are 3/20, n/30. If Ace sends a partial payment of $7,400 on the discount date, what is the net amount still due?

Divide the partial payment by 100% - the cash discount rate. Then subtract that answer from the net price. It will look like this.

7,400/100% - 3%= 7,400/97%

7,400/.97= 7528.865= 7528.87

27,700 - 7528.87= 20071.13

The answer is $20,071.13

Ace Formalwear buys tuxedos from a supplier and has an invoice amount of $27,700. The terms of the sale are 3/20, n/30. If Ace sends a partial payment of $7,400 on the discount date, what is the net amount still due?

To calculate the net amount still due, we need to determine the amount of discount that Ace Formalwear is eligible for and then subtract it from the invoice amount.

The terms of the sale, 3/20, n/30, mean that if Ace pays within 20 days of the invoice date, they can take a 3% discount. The "n" in the terms indicates the net amount due, which needs to be paid within 30 days of the invoice date, without any discount.

In this case, Ace sends a partial payment of $7,400 on the discount date. To calculate the net amount still due, we follow these steps:

Step 1: Calculate the discount amount.
Discount Amount = Invoice Amount x Discount Rate
Discount Amount = $27,700 x 0.03
Discount Amount = $831

Step 2: Calculate the remaining balance after the discount payment.
Remaining Balance = Invoice Amount - Discount Amount - Partial Payment
Remaining Balance = $27,700 - $831 - $7,400

Calculating this, we get:
Remaining Balance = $19,469

Therefore, the net amount still due from Ace Formalwear is $19,469.