Question

Lyman Company returned $750 of goods it had purchased from another company. The original invoice was for $4,200, 3/10, n/30. What is the discount if Lyman pays the balance within the discount period?

Answer 1

Calculation: 
3/10                3--------->3% discount     
                      10-------->the days in the discount period, the company has 10 days to pay the bill in full. 

Therefore

Lyman pays the balance within the discount period

 ($4,200 – $750) x .03 = $103.50

the discount is $103.50