A pay application includes $120,000 of approved stored material subject to 10 percent retainage. What net stored-material payment is included before previous-payment adjustments?
Correct Answer
B) $108,000
Retainage is $120,000 x 10% = $12,000, so net stored-material payment is $120,000 - $12,000 = $108,000. Other choices report retainage only, use an unsupported amount, or add retainage.
Why This Is the Correct Answer
Retainage is $120,000 x 10% = $12,000, so net stored-material payment is $120,000 - $12,000 = $108,000. Other choices report retainage only, use an unsupported amount, or add retainage.
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