Simmons, Inc. received an invoice from Wilson Company for $3,500 with terms of 3/10, n/45 on March 8. If Simmons pays the bill on March 15, they will credit inventory under a perpetual inventory system for:

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The terms 3/10, n/45 mean that if Simmons pays within 10 days, they can take a 3% discount (i.e., $3,500 x 0.03 = $105), otherwise, they must pay the full amount within 45 days. Since Simmons did not pay within the 10-day discount period, they will not receive any discount. Therefore, they will credit inventory for $0. If they had paid within the discount period, they would have credited inventory for $105 (the amount of the discount).