Bartner Furniture,Inc.purchased inventory at $1,200 list price and the terms were 3/10 n/30.If Bartner paid the full invoice price on the 10th day,what amount of cash did Bartner pay to settle the account?

Question

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Bartner Furniture, Inc. can take a 3% discount if they pay within 10 days, which would make the cost of the inventory $1,200 - ($1,200 * 0.03) = $1,164. Therefore, Bartner paid $1,164 to settle the account on the 10th day.