Juniper Company, Inc. uses a perpetual inventory system. The company purchased $9,750 of merchandise on August 7 with terms 1/10, n/30. On August 11, it returned $1,500 worth of merchandise. On August 26, it paid the full amount due. The amount of the cash paid on August 26 equals:
A)$8,167.50.
B)$9,652.50.
C)$9,750.00.
D)$8,250.00.
E)$8,152.50.

Question

Quizplus · Accepted Answer

The company purchased $9,750 and returned $1,500, leaving a balance of $8,250. Since the payment was made after the discount period, no discount is applied.