How much cash did Handler Company send to Ellen Co. on May 7th?

Calculation of Cash Sent to Ellen Co. by Handler Company

Handler Company owed Ellen Co. $2,185. Since Handler Company paid within 15 days, they are eligible for a 1% discount. To calculate the discount amount, we multiply $2,185 by 1% (0.01):

Discount amount = $2,185 x 0.01 = $21.85

Therefore, Handler Company would have sent $2,185 - $21.85 = $2,163.15 cash to Ellen Co. on May 7th.

Explanation

To calculate the amount of cash that Handler Company sent to Ellen Co., we need to determine the original amount owed by Handler Company and then subtract the discount. Handler Company owed Ellen Co. $2,185. Since Handler Company paid within 15 days, they are eligible for a 1% discount.