Jake Company purchased on account merchandise with a list price of $90,000. Payment terms were 1/15, n/45. If payment occurs within 18 days, what discount will Jake Company recognize on the merchandise?

Question

Quizplus · Accepted Answer

The payment terms 1/15, n/45 mean a 1% discount is available if payment is made within 15 days. Since Jake Company paid on the 18th day, they are not eligible for the discount.

Jake Company Purchased on Account Merchandise with a List Price