An invoice for $20,000 dated March 15 with terms 3/10, 2/20, n/30 is received in the mail on March 17^th. A payment of $10,000 is made on March 26. How much is credited to the account? A) $10,204.08 B) $10,150 C) $9,800 D) $9,850 E) $10,000

Question

Quizplus · Accepted Answer

The correct answer is A because the payment was made within the 10-day discount period, so the buyer is entitled to a 3% discount. The amount of the discount is $20,000 x 0.03 = $600. The amount credited to the account is $10,000 + $600 = $10,204.08.

An Invoice for $20,000 Dated March 15 with Terms 3/10