Your company purchases $50,000 of inventory from a wholesaler that allows you 45 days to pay.In addition,the wholesaler offers a 3% discount if payment is made within 12 days.These payment terms would be expressed as:

Question

Quizplus · Accepted Answer

The payment terms are expressed as 3/12, n/45. The 3/12 means that if payment is made within 12 days, a 3% discount will be given. The n/45 means that the full payment is due within 45 days. Therefore, option D correctly represents these terms.

Your Company Purchases $50,000 of Inventory from a Wholesaler That