# Smith of Victorville sold office equipment for $12,500 to Frank of Barstow. Terms of the sale are 2/10, n/30 FOB Victorville. Assume Frank pays within the discount period. How much will Frank pay?

## To determine how much Frank will pay, we need to calculate the discount amount and subtract it from the total amount.

The terms of the sale state 2/10, n/30. This means that the buyer, Frank, is entitled to a 2% discount if payment is made within 10 days, and the full amount is due within 30 days.

Step 1: Calculate the discount amount.

The discount percentage is 2% of the total amount.

Discount = 2% * $12,500

= 0.02 * $12,500

= $250

Step 2: Subtract the discount from the total amount to find the payment amount.

Payment amount = Total amount - Discount

= $12,500 - $250

= $12,250

Therefore, if Frank pays within the discount period, he will pay $12,250.