Your company purchased $10,000 worth of inventory on January 2 on credit. The terms of sale are 3/15 net 45. How much will you pay if payment is made on January 15?

Question

Quizplus · Accepted Answer

The terms 3/15 net 45 mean that the buyer can take a 3% discount on the invoice amount if payment is made within 15 days; otherwise, the full amount is due within 45 days. Therefore, if payment is made on January 15, the company can take a 3% discount on $10,000, which is $300. So, the payment will be $10,000 - $300 = $9,700.

Your Company Purchased $10,000 Worth of Inventory on January 2