On May 26, XYZ Company purchased inventory for \$25,500 on account. The discount terms were 8/15, n/40.
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# 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.

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...

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