Custom Kitchens received an invoice dated November 17 from Idea Cabinets Ltd. for $7260 with terms 3/15, 15/30,n/60. If Custom Kitchens made a payment of $4000 on December 2, what further payment on December 16 will settle the account?
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To determine the remaining payment that will settle the account on December 16, we need to consider the terms of the invoice.
The terms given are 3/15, 15/30, n/60. This means that if the payment is made within 3 days of the invoice date (November 17 in this case), a 3% discount can be applied. If the payment is made between the 16th and 30th day after the invoice date, the full amount is due and no discount is available. And if the payment is made after 60 days, it is considered past due.
In this case, the payment of $4000 was made on December 2, which is between the 16th and 30th day after the invoice date. Since no discount is available, the payment does not qualify for any discount.
To find out what further payment is needed on December 16 to settle the account, we need to subtract the $4000 already paid from the total amount of the invoice.
Total amount of the invoice: $7260
Amount already paid: $4000
Remaining amount to be paid: $7260 - $4000 = $3260
Therefore, a further payment of $3260 on December 16 will settle the account.