A company makes a purchase of $2,000 of inventory, subject to credit terms of 3/10 n/45 and returns $500 of inventory prior to payment. What is the amount of the payment assuming payment is made within the discount period?
A)$1,500
B)$1,455
C)$1,440
D)$1,560

Question

Quizplus · Accepted Answer

The company initially purchased $2,000 of inventory. After returning $500, the total amount becomes $1,500. With a 3% discount for early payment (3/10 n/45 terms), the payment amount is $1,500 - ($1,500 * 0.03) = $1,500 - $45 = $1,455.

A Company Makes a Purchase of $2,000 of Inventory, Subject