Jake Co.purchased on account merchandise with a list price of $90,000.Payment terms were 1/15,n/45.If collection occurs within 18 days,what discount will Jake Co.recognize on the merchandise?

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The terms 1/15,n/45 indicate that the seller will allow a 1 percent discount if the purchaser pays cash within 15 days from the date of purchase.The amount not paid within the first 15 days is due at the end of 45 days from the date of purchase.In this case,Jake Co.did not meet the 15-day requirement.It took Jake Co.18 days to pay which means Jake does not get the 1 percent discount.

Jake CoPurchased on Account Merchandise with a List Price of $90,000