Answer:
$696
Explanation:
As per the question, the terms for payment in 10 days is 3% discount. To calculate the new balance, we need to deduct the Total Amount due from Amount Credited for this payment.
Amount Credited will be calculated by dividing the amount paid to supplier from 100% less the discount rate applied. As shown below:
Amount Paid / (100% - discount rate)
140 / (100% - 3%) = 144.33 or Rounding off to $144
New Balance = 840 - 144 = $696
Therefore, new balance is $696.
