My small business recently sent an invoice for consulting fe

My small business recently sent an invoice for consulting fees, of $8,000 to a client company on Dec 20, 2012. The terms were 2/10, 1.5/15, 1/30, n/60. The client sent a partial payment of $2,500.00 on Januaury.

What is the remaining balance?

Solution

If they pay the invoice by 8/3 they would pay $5,880.00 since on top of their 40% discount they get a 2% quick pay discount. Now, if you apply the quick pay before taking of the trade discount it would be $5,800 which they would pay if paid by 8/3. If they waited to pay until 9/8 they would pay $6,000 since they didn\'t take advantage of the quick pay discount