Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000, subject to credit terms of 1/10, n/30.

Question

Business

Teagan Barrera

11 April, 10:41

Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000, subject to credit terms of 1/10, n/30.

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Answers (2)

Know the Answer?

Zoey · Answer 1

The correct answer to your question is "$9,900.00"

Dwayne · Answer 2

1/10, n/30 means that the customer pays less 1% if such payment is done within the discount period of 10 days otherwise the amount should be paid in full after 30 days.

Therefore, within the discount period,

Amount paid = (1-0.1) * 10,000 = $9,000