On January 5,Boise Cascade Company purchases $5,000 of merchandise from a vendor with credit terms of 2/10,n/30.If Boise Cascade pays the vendor on January 20,the amount of the payment should be ________.

Question

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The credit terms 2/10, n/30 mean that Boise Cascade can take a 2% discount if they pay within 10 days; otherwise, the net (full) amount is due within 30 days. Since Boise Cascade pays on January 20, which is beyond the 10-day discount period, they must pay the full amount of $5,000.

On January 5,Boise Cascade Company Purchases $5,000 of Merchandise from a Vendor