Question

Beacon Food Stores purchased canned goods at an invoice price of $4,200 and terms of 3/10, n/60. Half of the goods had been mislabeled and were returned immediately to the supplier. If Beacon Food pays the remaining amount of the invoice within the discount period, the amount paid should be:

Answer 1

3/10, n/60 Indicates that the bill due period is 60 days and 3% discount would be available if paid within 10 days.

Ans:

Half of the goods has been returned so the net amount payable would be($4200/2) that is $2100.

As the question denotes that remaining amount is paid within discount period the customer would be eligible for 3% discount, Hence the net amount payable would be 97% of $2100 that amounts to $2037.

The amount paid should be $2037.