A supplier invoice for a Daytona Beach project is $42,600 with terms 1/10, net 30. If paid during the discount period, what check amount should be issued?
Correct Answer
B) $42,174.00
The 1% discount is $426, so the payment is $42,174.
Why This Is the Correct Answer
The 1% discount is $426, so the payment is $42,174.
Why the Other Options Are Wrong
Option A: $42,174
$42,174 is not aligned with the supported result for purchase discount; it has the wrong label or classification even if the number looks close.
Option C: $42,426.00
$42,426.00 is above the supported result for purchase discount; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $42,600.00
$42,600.00 is above the supported result for purchase discount; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Dollars and payment live in different drawers; Approving Payables tells which opens.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Section Two, Check Writing and Recording, Paying Accounts Payable; use the job ledger figures in the stem and recompute the same accounting measure.
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