1. **Problem statement:** Gunderson's Hardware received a $20,800 invoice dated March 16 with cash discount terms 3/10, n/30. On March 23, Gunderson's sent an $8,320 partial payment. We need to find: a. The credit Gunderson's should receive. b. The outstanding balance on the invoice. 2. **Understanding the terms:** - 3/10 means a 3% discount is available if payment is made within 10 days. - n/30 means the net (full) amount is due within 30 days. 3. **Check if discount applies:** - Invoice date: March 16 - Payment date: March 23 - Days between: March 23 - March 16 = 7 days Since 7 days <= 10 days, the 3% discount applies to the payment made. 4. **Calculate the credit (discount) on the partial payment:** $$\text{Credit} = 8320 \times 0.03 = 249.60$$ 5. **Calculate the outstanding balance:** - Amount paid after discount: $$8320 - 249.60 = 8070.40$$ - Outstanding balance: $$20800 - 8070.40 = 12729.60$$ 6. **Final answers:** a. Credit Gunderson's should receive: **$249.60** b. Outstanding balance on the invoice: **$12729.60**