Problem:
Bally Manufacturing sent Intel Corporation an invoice for machinery with a $19,000 list price. Bally dated the invoice July 23 with 5/10 EOM terms. Intel receives a 20% trade discount. Intel pays the invoice on August 5. On August 1, Intel Corporation returns $1,100 of the machinery due to defects.
Required: What does Intel pay Bally on August 5?
Note: Please provide step by step solution.