If a company purchases $3,200 worth of inventory with terms of 3/10, n/30 on March 3 and pays March 12, then the amount paid to the seller would be
A) $96
B) $3,104
C) $3,200
D) None of these choices

Question

Quizplus · Accepted Answer

The discount period is 3/10, which means that the buyer can deduct 3% of the purchase price if paying within 10 days. 
Amount of discount = 3,200 x 3% = $96 
Amount to be paid = purchase price - discount amount = $3,200 - $96 = $3,104.

If a Company Purchases $3,200 Worth of Inventory with Terms