The Local Dollar Store Received an Invoice for $8500

question 136

Essay

The Local Dollar Store received an invoice for $8500.00 dated January 31, terms 5/10, 2/30, n/90, for a shipment of skis. The Local Dollar Store made two partial payments.
a) How much was paid on February 7 to reduce the unpaid balance to $5000.00?
b) How much was paid on March 1 to reduce the outstanding balance by $1500.00?
c) What was the outstanding balance on the account on March 2?
d) How much did the Local Dollar Store save by taking the advantage of the cash discounts?