required: bally manufacturing sent intel corporation an invoice for machinery with a $13,800 list price…

required: bally manufacturing sent intel corporation an invoice for machinery with a $13,800 list price. bally dated the invoice august 01 with $\frac{5}{10}$ eom terms. intel receives a 40% trade discount. intel pays the invoice on august 14. what does intel pay bally? payable amount to bally

required: bally manufacturing sent intel corporation an invoice for machinery with a $13,800 list price. bally dated the invoice august 01 with $\frac{5}{10}$ eom terms. intel receives a 40% trade discount. intel pays the invoice on august 14. what does intel pay bally? payable amount to bally

Answer

Explanation:

Step1: Calculate the price after trade - discount

The trade - discount rate is 40%, so the amount of the trade - discount is $0.40\times13800$. The price after the trade - discount is $(1 - 0.40)\times13800$. $(1 - 0.40)\times13800=0.60\times13800$ $0.60\times13800 = 8280$

Answer:

$8280$