A Company Purchased $1,500 of Merchandise on Credit with Terms

question 68

Multiple Choice

A company purchased $1,500 of merchandise on credit with terms 3/15,n/30.How much will be debited to Accounts Payable if the company pays $485 cash on this account within 10 days?

• A)$485.00
• B)$500.00
• C)Nothing will be debited to Accounts Payable; the account should be credited in this situation.
• D)$470.45
• E)$1,455.00

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Definitions:

Converter Dolly

A single axle coupling assembly with a frame, drawbar, and fifth wheel that converts a semitrailer into a full-trailer.

Drawbar

The device used to connect a trailer tongue to either a pintle hook or a ball hitch.

Pintle Hook

A type of towing hitch used to connect trailers or other towable equipment to a vehicle or equipment, characterized by a hook-and-loop configuration.

Fiber Reinforced Plywood (FRP)

A composite material made by reinforcing plywood with fibers to enhance its strength and durability.