# Step-by-Step Solution ## **Introduction** Regal Event Management received an invoice for $8,650 on November 18, with credit terms **1/21, n/30, EOM**. This means: - **1/21:** 1% discount if paid within 21 days after the end of the month (EOM) - **n/30:** Net (full amount) due within 30 days after EOM Regal made a payment of **$5,000 on December 9**. We need to determine the **additional payment** required on **December 20** to completely settle the account, considering cash discounts if eligible. --- ## **Step 1: Understanding the EOM Credit Terms** - **Invoice Date:** November 18 - **EOM (End of Month):** November 30 - **1/21:** Discount period is 21 days after EOM = **November 30 + 21 days = December 21** - **n/30:** Net due 30 days after EOM = **November 30 + 30 days = December 30** - **Discount Available:** 1% if paid by December 21 --- ## **Step 2: Calculate Discount Eligibility** - **Payment made on December 9:** Within discount period (before December 21) - **Additional payment on December 20:** Also within discount period **Both payments qualify for the 1% discount.** --- ## **Step 3: Calculate Total Amount Owed with Discount** ### **Invoice Amount:** $8,650 ### **Total Payment (after 1% discount):** \[ \text{Discount} = \$8,650 \times 1\% = \$86.50 \] \[ \text{Amount Due After Discount} = \$8,650 - \$86.50 = \$8,563.50 \] --- ## **Step 4: Subtract Partial Payment Already Made** - **Partial Payment on December 9:** $5,000 \[ \text{Remaining Amount Due} = \$8,563.50 - \$5,000 = \$3,563.50 \] --- ## **Step 5: Final Answer** **Additional Payment Needed:** \[ \boxed{\$3,563.50} \] --- ### **Summary Table** | Step | Calculation | Amount | |------------------------------|---------------------------|------------| | Original Invoice | — | $8,650.00 | | Less 1% Discount | $8,650 × 1% | $86.50 | | Total After Discount | $8,650 − $86.50 | $8,563.50 | | Less Payment (Dec 9) | $8,563.50 − $5,000 | $3,563.50 | | **Additional Payment Due** | **—** | **$3,563.50** | --- ## **Final Answer** **Additional payment required on December 20 to settle the account:** \[ \boxed{\$3,563.50} \]