On May 26, XYZ Company purchased inventory for $25,500 on account. The discount terms were 8/15, n/40.
View the step-by-step solution to:

Question

On May 26, XYZ Company purchased inventory for $25,500 on account.

The discount terms were 8/15, n/40. XYZ

Company paid one-third of

its bill on June 1, paid one-third of its bill on June 7, and paid

the final one-third of its bill on June 13.


Calculate the total amount of cash paid by XYZ Company for its

purchase of inventory.

Top Answer

View the full answer
Solution.png

Paid on
Total Amount
In Discount period Discount
Net Amount Cash Paid
June 1
1/3
X
$25,500 =
$8,500 Yes
$680
$7.820
($8,500 x 8%)
June 7
1/3
X
$25,500 =
$8.500 Yes
$680
$7.820
($8,500 x 8%)
June...

Sign up to view the full answer

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question