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Damon Company sold merchandise to a customer on credit for $10,000 with credit terms of 1/10,...

Damon Company sold merchandise to a customer on credit for $10,000 with credit terms of 1/10, n/30.  The invoice was dated April 14.

Which one of the following statements is true?

a.

The customer can take a $1,000 discount if the invoice is paid by May 13

b.

The customer should pay $9,500 if the invoice is paid by April 24

c.

The customer must pay $10,000 if paid after April 24

d.

The customer must pay a $100 penalty if payment is made after May 13

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