A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $800 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it was entitled to. The cash paid on June 24 equals:
A) $9,700.
B) $9,800.
C) $10,000.
D) $8,724.
E) $8,924.

Question

Quizplus · Accepted Answer

The company is entitled to a 3% discount on the remaining $9,200 ($10,000 - $800) if paid within 10 days. The discount is $276 (3% of $9,200), so the cash paid is $9,200 - $276 = $8,924.

A Company Purchased $10,000 of Merchandise on June 15 with Terms