Question 7.4.7: Dave’s Body and Paint receives an invoice for $1140 dated Ma......

Step 1 Since the payment of $450 was made on April 5 or before the last discount date of April 10, it earns a cash discount.

Complement of the discount percent = 100% – 2% = 98%

     Amount credited for partial payment = \frac{Part}{Base} = \frac{\$450}{\mathbf{98\%}} = $459.18

Step 2 Balance due = Invoice amount – Credit given

             Balance due = $1140 – $459.18 = $680.82

Step 3 Cash discount = Credit given – Partial payment

             Cash discount = $459.18 – $450 = $9.18

A calculator solution to this example includes these three steps. First, find the amount of credit given.

450\ \boxed{÷}\ .98\ \boxed{=}\ 459.18\ (rounded)\ \boxed{STO}

    Then, store the amount of credit and subtract this amount from the invoice amount to find the balance due.

1140\ \boxed{-}\ \boxed{RCL}\ \boxed{=}\ 680.82

    Finally, subtract the partial payment from the amount of credit given to find the cash discount.

\boxed{RCL}\ \boxed{-}\ 450\ \boxed{=}\ 9.18