What Payment Must Be Made on April 5 on an Invoice

question 53

Short Answer

What payment must be made on April 5 on an invoice for $2,250, dated March 16 with terms 2/10, 1/20, n/30 in order to reduce the outstanding balance to $1,500?

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Definitions:

Stop Payment Order

A request made to a bank to cancel a check or payment that has not been processed yet.

Subrogation

The legal process by which one party stands in for another to claim restitution or indemnity from a third party for a loss or damage.

Improper Payment

Payments made by organizations that should not have been made or that were made in an incorrect amount.

Preauthorized Electronic Transfer

An automatic transfer of funds from one account to another, agreed upon in advance by the account holder.