Question

Determine the amount to be paid within the discount period for a previous sale with an invoice price of $10,000, subject to credit terms of 1/10, n/30.

Answer 1

The correct answer to your question is "$9,900.00"

Answer 2

1/10, n/30 means that the customer pays less 1% if such payment is done within the discount period of 10 days otherwise the amount should be paid in full after 30 days.

Therefore, within the discount period,

Amount paid = (1-0.1)*10,000 = $9,000