A company purchased $6,000 of merchandise on credit with terms 4/15,n/30.How much will be debited to Accounts Payable if the company pays $800 cash on this account within 10 days?
A)$833.33
B)$800.00
C)Nothing will debited to Accounts Payable; the account should be credited in this situation.
D)$5,760.00
E)$5,333.33

Question

Quizplus · Accepted Answer

The company receives a 4% discount for paying within 15 days, so the discount on $800 is $32. Therefore, $800 - $32 = $768 will be debited to Accounts Payable. However, the question asks for the amount debited, which is the full payment amount of $800.

A Company Purchased $6,000 of Merchandise on Credit with Terms