Bartner Furniture,Inc.purchased inventory at $1,200 list price and the terms were 3/10,n/30.Bartner paid the full invoice price on the 10^th day,what amount of cash did Bartner pay to settle the account?

Question

Quizplus · Accepted Answer

The discount term of 3/10 means that if payment is made within 10 days, the buyer can deduct 3% from the list price (which is $1,200 in this case). Therefore, the discounted price that Bartner can pay within the discount period is:

$1,200 - 0.03($1,200) = $1,164

Since Bartner paid on the 10th day, they still qualified for the discount and paid $1,164.