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?

Cash discount practices vary.

Some expect full payment within the specified date to qualify for the discount, some will discount the paid amount.

I assume the latter given the nature of the question.

3/20 means 3% discount on amount paid within 20 days, and the remainder due on the 30th day.

If $7400 was remitted within 20 days, the amount payable is reduced by
$7400/(100-3%)= $7628.87
So outstanding amount payable
= $27700-$7628.87
= $ 20071.13

On August 18, Sullivan Company received an invoice in the amount of $6,700, having terms of sale of 4/15 EOM. What is the discount date?

To calculate the net amount still due, we need to subtract the partial payment from the invoice amount.

1. Determine the discount percentage:
- The terms of the sale are 3/20, n/30.
- The first number represents the discount percentage, which is 3%.

2. Multiply the invoice amount by the discount percentage to find the discount amount:
Discount amount = $27,700 * (3/100) = $831.

3. Subtract the discount amount from the invoice amount:
Invoice amount - Discount amount = $27,700 - $831 = $26,869.

4. Subtract the partial payment from the net amount:
Net amount still due = $26,869 - $7,400 = $19,469.

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

To calculate the net amount still due, we need to consider the terms of the sale and the partial payment made by Ace Formalwear.

The terms of the sale are given as 3/20, n/30. This means that if the invoice is paid within 20 days, a 3% discount can be applied. Otherwise, the total amount is due within 30 days, without any discount.

Ace Formalwear sends a partial payment of $7,400 on the discount date. This means that they are eligible for the discount.

To calculate the net amount still due, we need to subtract the discount from the invoice amount and then subtract the partial payment made.

Discount amount = Invoice amount * Discount rate
= $27,700 * 3% (or 0.03)
= $831

Net amount still due = Invoice amount - Discount amount - Partial payment
= $27,700 - $831 - $7,400
= $19,469

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