Leda orders 1,000 imprinted pens from Mark-It Promotions for which she draws a check on N Bank for $100.Leda accepts the first shipment of 100 pens,refuses to accept future shipments,and issues a stop-payment or?der.The bank pays the check.Leda can recover from the bank
A)$0.
B)$10.
C)$90.
D)$100.

Question

Quizplus · Accepted Answer

Since Leda only accepted the first shipment of 100 pens and refused future shipments, she should only pay for the pens that she received. The value of those pens is 100/10 = $10 per pen, so she should pay $10 for the first shipment of 100 pens. Since she issued a stop-payment order after the first payment, she should be able to recover the remaining $90 from the bank. Therefore, the correct choice is C.

Leda Orders 1,000 Imprinted Pens from Mark-It Promotions for Which