Sailors,Inc.sold $100,000 of merchandise to Breyer,Inc.with terms of 1/10,n/30.Five days later,Breyer returned $10,000 of the merchandise.If Breyer pays within the discount period,how much cash will Sailors receive?

Question

Quizplus · Accepted Answer

Breyer returned $10,000 of the merchandise, so the net sale would be $90,000. With terms of 1/10, Sailors can offer a 1% discount if Breyer pays within 10 days. Therefore, if Breyer pays within the discount period, they will pay $89,100 ($90,000 - $900 discount).