Question

g Jefferson & Sons purchase $5,000 of merchandise from the Claremont Company with terms of 3/10, n/30. How much discount is Jefferson & Sons entitled to take if it pays within the allowed discount period of 10 days

Answer 1

Answer:

Discount Received = $150

Explanation:

The terms of the purchase of inventory are 3/10, n/30 which means that Jefferson & Sons can avail a discount of 3% if they pay within the 10 days of purchase of merchandise and the total time allowed for payment for merchandise is 30 days.

If the payment is made within the discount period, Jefferson can avail a discount of,

Discount Received = 5000 * 3%

Discount Received = $150