Bottom,Inc.paid an invoice for $1,000,with discount terms of 1/7,n/30,within the discount period and will write a check in the amount of:
A) $1,000.
B) $990.
C) $1,010.
D) $999.

Question

Quizplus · Accepted Answer

The discount terms of 1/7, n/30 means that the company can take a 1% discount if paid within 7 days, otherwise the full amount is due within 30 days. In this case, the company paid within the discount period and can take the discount of 1%. Therefore, the check amount will be $1,000 - ($1,000 x 1%) = $990.