Question

On May 26, XYZ Company purchased inventory for $25,500 on account.
The discount terms were 8/15, n/40. XYZ Company paid one-third of
its bill on June 1, paid one-third of its bill on June 7, and paid
the final one-third of its bill on June 13.

Calculate the total amount of cash paid by XYZ Company for its
purchase of inventory.

Answer 1

2/3 of amount paid is eligible for cash discount as payment is made within 15 days.
Net amount paid on June 1 and 7	15640	=(25500*2/3)*(1-8%)
Amount paid on June 13	8500	=(25500*1/3)
Total amount of cash paid by XYZ Company	24140