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Lilly’s Boots purchased inventory with an invoice price of $10,000 and credit terms of 3/10, n/30. What is the net cost of the goods if Lilly’s Boots pays within the discount period?Group of answer choices$10,300$9,900$10,000$9,700

Question

Lilly’s Boots purchased inventory with an invoice price of 10,000andcredittermsof3/10, n/30.WhatisthenetcostofthegoodsifLillysBootspayswithinthediscountperiod?Groupofanswerchoices10,000 and credit terms of 3/10, n/30. What is the net cost of the goods if Lilly’s Boots pays within the discount period?Group of answer choices10,3009,9009,90010,000$9,700

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Solution

The net cost of the goods if Lilly’s Boots pays within the discount period would be $9,700.

Here's why:

  1. The credit terms of 3/10, n/30 mean that Lilly’s Boots is offered a 3% discount if it pays within 10 days (the discount period). After this period, the net amount of the invoice is due within

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