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 13,the amount of the payment should be ________.

Question

Quizplus · Accepted Answer

The credit terms of 2/10, n/30 mean that the vendor offers a 2% discount if the payment is made within 10 days. Otherwise, the full amount is due in 30 days. 
If Boise Cascade pays the vendor on January 13, they are making the payment within the discount period. Therefore, they can take a 2% discount on the $5,000 purchase. 
2% of $5,000 is $100, so the payment should be $5,000 - $100 = $4,900. 
Therefore, the best choice is B.

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