If a company purchases $3,200 worth of inventory with terms of 2/10, n/30 on March 3 and pays March 12, then the amount paid to the seller would be
A) $3,136
B) $3,168
C) $3,150
D) $3,200

Question

Quizplus · Accepted Answer

The terms 2/10, n/30 mean a 2% discount is available if payment is made within 10 days. Since the payment is made on March 12, within the discount period, the company can take a 2% discount on $3,200, which is $64. Therefore, the amount paid is $3,200 - $64 = $3,136.

If a Company Purchases $3,200 Worth of Inventory with Terms