Company A sells $500 of merchandise on account to Company B and offers credit terms of thirty days with a 2% discount if Co.B pays within ten days.If Company B takes advantage of the discount offered, what is the amount Company B will pay?

Question

Quizplus · Accepted Answer

If Company B takes the discount offered, they will pay 98% of the total amount, which is:
$500 x 0.98 = $490.

Company a Sells $500 of Merchandise on Account to Company