A local Sports Authority ordered 50 pairs of tennis shoes from Nike Corporation. The shoes were priced at $85 for each pair with the following terms: 4/10, 2/30, n/60. The invoice was dated October 15. Sports Authority sent in a payment on October 28. What should have been the amount of the check

The amount of check should have been $4,165

Explanation:

4/10, 2/30, n/60 term means there is a discount of 4% and 2 % available on the payment made withing 10 days and 30 days respectively with net credit period of 60 days. The invoice is made on 15 October and the authority sent the payment on October 28 after 10 days and within 30 days. Now the Payment is eligible for the discount of 2%. The amount of check should have been $4,165

Sales Amount = 50 x $85 = $4,250

Discount available = $4,250 x 2%  = $85

Amount of Check =  $4,250 - $85 = $4,165

answer; rapid growth in buyer demand and high buyer switching cost;