On May 11,you purchased $3700 of merchandise from a supplier.The terms of the sale were 1/5,net 15.The discounted amount due is _____ which is payable no later than _____.

Question

Quizplus · Accepted Answer

The first step is to calculate the amount of the discount. The terms of 1/5 mean that you can take 1% off the amount due if you pay within 15 days.

Discount = $3700 x 1% = $37

The amount due after the discount is:

Amount due = $3700 - $37 = $3663

Therefore, the discounted amount due is $3663.

The terms also state that the payment is due no later than 15 days, which would be May 26. However, if you take the discount, the payment would be due five days earlier, on May 16.

So, the final answer is D) $3663; May 16.

On May 11,you Purchased $3700 of Merchandise from a Supplier