Question

Suppose that on April 2, you purchase equipment for $100,000. You are offered credit terms of 3/10, net 30. On April 6, you returned $15,000 worth of the order because it was the wrong color. If you pay on April 28, to the nearest dollar, how much will you have to pay? Do not include $ in your answer.

Answer 1

$85,000

Step-by-step explanation:

Since in the question it is given that the equipment is purchased on April 2 for $100,000 and the credit terms is 3/10, net 30 which means 3% discount is given if payment is made within 10 days and the net days allowed for payment is 30 days

And, on April 6, the goods is returned for $15,000

And, on April 28 the amount is paid

Since the payment is made after 10 days so no discount is applicable plus the amount which is paid is

= $100,000 - $15,000

= $85,000