Question

According to a November 13 invoice, Stan's Stationary Store owes $18,500 to one of its suppliers. The sales terms are 6/10, 4/15, n/30. Find the cash discount if the invoiceis paid on November 26.$16,780$17,125$17,760$18,090None of these choices are correct.

Answer 1

We are given that the terms of payment for the invoice are:

`(6)/(10),(4)/(15),(n)/(30)`

This means that the net payment will have a 6% discount within the first 10 days, 4% during the first 15 days, and must be the total amount within the 30 days.

Since the payment will be within the first 15 days, the cash discount is 4%. The answer is then "None of the choices are correct".