On May 14, X-Mart purchased $500 of merchandise with terms of 3/15, n/40. If payment is made on May 28, calculate the purchase discount that may be taken by X-Mart.

Question

Gia Perkins

Business

12 December, 19:47

On May 14, X-Mart purchased $500 of merchandise with terms of 3/15, n/40. If payment is made on May 28, calculate the purchase discount that may be taken by X-Mart.

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Ranger · Answer 1

The discount received is $15

Explanation:

The terms are 3% discount if the customer pays within 15 days of purchase of goods. X-Mart will receive discount because the payment made was within the 15 days of purchases made which starts from May 14 to May 29.

The payment made is in May 28. This means:

Discount received = $500 * 3% = $15.