If a company purchases $3,000 worth of inventory with terms of 1/15,n/30 and pays within 15 days,then the amount paid to the seller would be
A)$2,550.
B)$2,970.
C)$3,000.
D)$3,030.

Question

Quizplus · Accepted Answer

The terms 1/15, n/30 mean that the buyer can take a 1% discount if the invoice is paid within 15 days. Therefore, the amount paid is $3,000 - 1% of $3,000 = $3,000 - $30 = $2,970.

If a Company Purchases $3,000 Worth of Inventory with Terms