An Invoice of $1,000 for Merchandise Purchased Is Showing 3/15,n/30

question 138

Multiple Choice

An invoice of $1,000 for merchandise purchased is showing 3/15,n/30 as terms of credit.If the invoice is paid on or before the fifteenth day after the invoice date,the amount to be paid is ________.

• A) $970
• B) $1,000
• C) $1,030
• D) $1,033

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Definitions:

Loss Recovery

The process of recouping losses from previous investment or business activities, often by adjustments in strategy or receiving compensations.

Allowance Method

The Allowance Method is an accounting technique that estimates and accounts for doubtful accounts, reducing the accounts receivable to its net realizable value.

Going Concern Assumption

An accounting principle assuming that an entity will continue to operate for the foreseeable future.