Let's break down the problem **step by step**: --- ## 1. **Understand the Credit Terms** - **Invoice Date:** November 18 - **Invoice Amount:** $8,650 - **Credit Terms:** 1/21, n/30, EOM - **1/21:** 1% discount if paid within 21 days after the end of the month (EOM) - **n/30:** Net amount due in 30 days after EOM - **EOM:** End of Month - **Goods Received:** November 26 --- ## 2. **Determine Discount and Due Dates** Since the invoice is dated **November 18** and the terms are EOM: - **EOM:** November 30 - **Discount Period:** 21 days after EOM = November 30 + 21 days = **December 21** - **Net Due Date:** 30 days after EOM = November 30 + 30 days = **December 30** --- ## 3. **Payments** - Regal paid **$5,000 on December 9** (within discount period). - Need to settle the rest on **December 20** (also within discount period). --- ## 4. **Calculate Discount on the Invoice** - **Eligible for 1% discount** since payment is within 21 days after EOM (before December 21). - **Total Invoice:** $8,650 - **Discount:** 1% of $8,650 = $8,650 × .01 = **$86.50** - **Amount Payable after Discount:** $8,650 - $86.50 = **$8,563.50** --- ## 5. **Calculate Remaining Balance** - **First Payment on December 9:** $5,000 - **Balance after Payment:** $8,563.50 - $5,000 = **$3,563.50** --- ## 6. **Final Answer** **Additional payment required on December 20 to settle the account:** \[ \boxed{ \$3,563.50 } \] --- ### **Summary Table** | Description | Amount | |---------------------------------|-------------| | Invoice Amount | $8,650.00 | | Less: 1% Discount | $86.50 | | Amount Payable after Discount | $8,563.50 | | Less: Payment on Dec 9 | $5,000.00 | | **Additional Payment on Dec 20**| $3,563.50 |