Bally Manufacturing sent Intel Corporation an invoice for machinery with a $24,800 list price. Bally dated the invoice July 23 with 5/10 EOM terms. Intel receives a 40% trade discount. On August 1, Intel Corporation returns $300 of the machinery due to defects. Intel pays the invoice on August 16. What does Intel pay Bally on August 16? The payment on August 16 is $____________
14700.00 working notes: 24800-300(return)-40% trade discount =$14700.00 company was not entitled for any cash discount as they are paying invoice on 16th of august and the term was 5/10 meaning the last day to get the discount is 10th of august. I hope my answer is correct.
