Frigart Company sold goods for 3 comma 000 3000 with terms

Frigart Company sold goods for $ 3 comma 000 $3,000 with terms 1 1?/10, ?n/30. How much would Frigart receive if the account were paid within the discount? period?

Solution

there is a discount of 1 % if paid within discount period of 10 days.

So,

if the account pays within discount period,

the amount to be received will be = $3,000 *( 100% - 1%)

=>$3,000 * 99%

=>$2,970.

Frigart would receive $2,970 is account were paid within discount period of 10 days.