Delta furnishings received an invoice dated may 10 for a shipment of goods received june 21. The invoice was for a $8400.00 less 33 1/3 % and 12 1/2% with terms 3/20, R. O.G. How much must Delta pay on july 9 to reduce its debt (a) by $2000, (b) to $2000?

The right solution is:

(a) $1,940

(b) $2,813

Step-by-step explanation:

Given:

Invoice amount

= $8,400

Discount 1

= 33.33%

Discount 2

= 12.5%

So,

The net payable amount will be:

=

=

= ($)

Now,

(a)

Amount paid will be:

=

= ($)

Balance still to be paid will be:

=

= ($)

(b)

Amount paid will be:

=

=

= ($)

Balance still to be paid will be:

= ($)

Thus the above solution is the appropriate one.