Rains Company is a furniture retailer. On January 14, 2017, Rains purchased merchandise inventory at a cost of $60,000. Credit terms were 2/10, n/30. The inventory was sold on account for $100,000 on January 21, 2017. Credit terms were 1/10, n/30. The accounts payable was settled on January 23, 2017 and the accounts receivables were settled on January 30, 2017. Which statement is correct?

Question

Quizplus · Accepted Answer

The accounts receivable was settled on January 30, 2017, within the discount period, so customers would remit $99,000 ($100,000 - 1% discount).

Rains Company Is a Furniture Retailer