Alliance Corporation purchased inventory with an invoice price of $22,000 and credit terms of 1/10, n/15.How much cash will Alliance pay if they pay within the discount period?
A)$22,000
B)$21,780
C)$22,220
D)$18,700

Question

Quizplus · Accepted Answer

Alliance Corporation will pay $21,780 if they pay within the discount period. The discount is 1% of $22,000, which is $220. Therefore, $22,000 - $220 = $21,780.

Alliance Corporation Purchased Inventory with an Invoice Price of $22,000