Parker Transport received a bill for $11,400 dated June 8 with payment terms of 3/15, n/45. What payment on June 22 would reduce the amount owing to $4,000?
A) $7,178
B) $7,058
C) $7,400
D) $3,880
E) $9,690

Question

Quizplus · Accepted Answer

The payment terms 3/15, n/45 mean a 3% discount is available if paid within 15 days. Paying on June 22 qualifies for the discount. The discount is 3% of $11,400, which is $342. The discounted amount is $11,400 - $342 = $11,058. To reduce the amount owing to $4,000, Parker Transport needs to pay $11,058 - $4,000 = $7,058.

Parker Transport Received a Bill for $11,400 Dated June 8