Question

Lyman Company returned $750 of goods it had purchased from another company. The original invoice was for $4,200, 3/10, n/30. What is the discount if Lyman pays the balance within the discount period?

Answer 1

Calculation:
3/10 3--------->3% discount
10-------->the days in the discount period, the company has 10 days to pay the bill in full.

Therefore Lyman pays the balance within the discount period ($4,200 – $750) x .03 = $103.50 the discount is $103.50