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esscourse.com/platform/mod/quiz/attempt.php2attempt-1883124&page-1; College Students\' E Course: ACC111:DL QUESTION 2 Not yet answered Points out of 3.00 P Flag question Smith &Sons; purchased merchandise with a list price of $5,000 from the Claremont Company. Claremont offers its customers credit terms of 3/10, n/45 What amount should Smith & Sons pay if the cash discount is taken? Select one: $4,900 $4,950 $5,000 $4,850 Next p Previous page

Solution

Claremont Company offers 3 % discount if bill is paid within 10 days otherwise total amount is due within 45 days.

$ 5,000 x (100 – 3) % = $ 5,000 x 97 % = $ 4,850

Smith and Sons will pay $ 4,850, if they avail the cash discount opportunity.

Hence option “$ 4,850” is correct answer.