Question

For medical waste services, record the services on account of $9,000 on March 12, with terms 4/10, n/30. What is the amount to be paid if the payment is made within the discount period?

1) $8,640
2) $8,910
3) $9,000
4) $9,360

Answer 1

The correct answer is option 1) $8,640, which is calculated by applying a 4% discount to the original amount of $9,000, resulting in a deduction of $360.

Step-by-step explanation:

The student has asked about recording services on account with specific payment terms and calculating the amount to be paid if the payment is made within the discount period.

Given the terms 4/10, n/30 for services of $9,000, this means that there is a 4% discount if the payment is made within 10 days, and the net amount is due within 30 days.

To calculate the discounted amount: $9,000 × 4% = $360.

Thus, the amount to be paid within the discount period is $9,000 - $360 = $8,640.

Therefore, the correct answer is option 1) $8,640.