Baker Corp

Multiple Choice

Baker Corp.sold merchandise to a customer on credit.The invoice amount was $1,000; the invoice date was June 10; credit terms were 1/10, n/30.Which one of the following statements is true?

A) The customer can take a $10 discount if the invoice is paid on June 30.
B) The customer should pay $1,000 if the invoice is paid on July 9.
C) The customer must pay a $10 penalty if payment is made after July 9.
D) The customer must pay $1,010 if payment is made after June 20.