If a company purchases $3,200 worth of inventory with terms of 3/10,n/30 on March 3 and pays March 12,then the amount paid to the seller would be
A)$96.
B)$3,104.
C)$3,200.
D)None of these are correct.

Question

Quizplus · Accepted Answer

According to the terms of 3/10, n/30, the buyer can get a 3% discount if they pay within 10 days, otherwise, the full amount is due within 30 days.

In this case, if the buyer pays within 10 days (by March 13), they can take a 3% discount on the $3,200 worth of inventory, which would be:

$3,200 x 0.03 = $96

So the amount paid to the seller would be:

$3,200 - $96 = $3,104

Therefore, the correct answer is B.

If a Company Purchases $3,200 Worth of Inventory with Terms