Question

Ellen Co. has offered their customers a 1% discount off the amount owed if they pay within 15 days of receiving their bill. Handler Company owed Ellen Co. $2,185 as of May 1st and paid Ellen Co. on May 7th. How much cash did Handler Company send to Ellen Co. on May 7th?

Answer 1

Handler Company received a 1% discount for early payment and sent Ellen Co. $2,163.15 on May 7th, after applying the discount to the total amount owed of $2,185.

Step-by-step explanation:

Handler Company was offered a 1% discount on its bill from Ellen Co. if they paid within 15 days. The total amount owed was $2,185 as of May 1st. Since Handler paid on May 7th, which is within the 15-day window, they were eligible for the discount. To calculate the discount amount:

• Discount = Total Amount * Discount Percentage
• Discount = $2,185 * 0.01
• Discount = $21.85

Now to find out the amount paid after taking the discount:

• Amount Paid = Total Amount - Discount
• Amount Paid = $2,185 - $21.85
• Amount Paid = $2,163.15

Therefore, Handler Company sent Ellen Co. $2,163.15 on May 7th.

Answer 2

Money send to Ellen = $2163.15

Step-by-step explanation:

Discount offered by the Ellen Co. = 1%

Owed amount = $2185

Since the amount is repaid within 15 days to the offer of a 1% discount will be applicable. So the Handler will send an amount that is 1% less than the actual amount.

Money send to Ellen = 2185 - (1% x 2185)

Money send to Ellen = $2163.15