Question

Bargain Books, Inc., an eclectic book and music store near a large college campus, is a reseller. The operation buys books almost every day. Deliveries are constantly part of the day-to-day operation of the firm. The transportation company that delivers to Backstreet Books provides this service on trade credit terms of 3/5, net 30. This means the firm ________.a) will receive a 5% discount if they pay within the first three days, but the entire bill is due in 30 daysb) will pay 30% of the charge on delivery and the rest within 5 daysc) is offered a 3% discount if it pays during the first 5 days. The entire bill is due in 30 daysd) will receive 10% discount on the first 5% of the order. The entire bill is due in 30 days

Answer 1

Answer:

c) is offered a 3% discount if it pays during the first 5 days. The entire bill is due in 30 days

Explanation:

When reading commercial terms:

3/5  n/30

the first number is the percentage of discount while the second is the days the discount is outstanding

Then, the second part means the person has 30 days to pay the bill at nominal afterwhich; the customer will have to settle with the company to make up for interest charges.

the nominal can be outstanding for a lesser period than 30 days is not mandatory to be 30 days same is true for the discount eahc company can determinate the day outstanding and amount of discount provided