The Quinter Corporation ordered material for its manufacturing process with a price of $75,000 and that had terms of 1/10 net/30.What is the lowest amount of cash Quinter will have to pay if it meets the terms of the discount agreement?
A)$67,500
B)$75,000
C)$74,250
D)$52,500

Question

Quizplus · Accepted Answer

The terms 1/10 net/30 mean that the buyer can take a 1% discount if they pay within 10 days, otherwise they need to pay the full amount within 30 days. So, if Quinter pays within 10 days, they can take a discount of $750 (1% of $75,000), which means they only need to pay $74,250 ($75,000 - $750). Therefore, the lowest amount of cash Quinter will have to pay if it meets the terms of the discount agreement is $74,250.

The Quinter Corporation Ordered Material for Its Manufacturing Process with a Price