Explanation:
The sale terms "510, n30" mean:
"5" represents the discount percentage, which is 5% in this case.
"10" represents the number of days in the discount period.
"n30" means that the net payment is due in 30 days.
Since LeeCo. is paying within the discount period, they are entitled to a 5% discount on the list price. Here's how you can calculate the payment:
Calculate the discount:
Discount = List Price x Discount Percentage
Discount = $5,600 x 0.05 = $280
Subtract the discount from the list price to find the discounted price:
Discounted Price = List Price - Discount
Discounted Price = $5,600 - $280 = $5,320
Add the prepaid freight to the discounted price:
Total Amount Due = Discounted Price + Prepaid Freight
Total Amount Due = $5,320 + $80 = $5,400
So, LeeCo. pays Macy $5,400.