A Company Makes a Purchase of $2,000 of Inventory, Subject

question 176

Multiple Choice

A company makes a purchase of $2,000 of inventory, subject to credit terms of 3/10 n/45 and returns $500 of inventory prior to payment. What is the amount of the payment assuming payment is made within the discount period?

• A)$1,500
• B)$1,455
• C)$1,440
• D)$1,560

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Definitions:

Manual Claims Tracking

A process where insurance claims are tracked by hand or through basic computer systems rather than automated software, requiring human input and organization.

Claim Scrubber Program

Computer software used in healthcare administration to check medical claims for errors and compliance with regulatory standards before they are sent to insurers for payment.

Group Insurance

An insurance plan that provides coverage to a group of members, usually employees of a company, under a single policy.

Fraud

Deceptive action designed to result in financial or personal gain, often at the expense of others.