Question

Ken Company purchased $7,000 of merchandise from Marilyn Company with terms of 4/10, n/45. What percent discount will Ken Company get if it pays within the allowed discount period? Answer % If Ken Company fails to pay within the discount period, how many days does Ken Company have from the date of purchase before the payment is considered to be late?

Answer 1

4% and 45 days

Step-by-step explanation:

Given that

Purchase value of merchandise = $7,000

Discount made within 10 days = 4%

Number of given days for payment = 45 days

So

In the first case, for eligible to discount, the discount rate is 4%

And, the prescribed time limit for paying the amount is 45 days which is already mentioned in the question

After 45 days, the payment is late.