Review the following credit terms and identify the one that states that the buyer will

receive a $3\%$ discount if the payment is made within $15$ days. Otherwise, full

payment is expected within $45$ days of the invoice date.

$\frac{3}{45},\frac{n}{15}$

$3/10,\frac{n}{45}$

$\frac{3}{15},\frac{n}{45}$

Which statement below correctly describes merchandise inventory?

Merchandise inventory is an asset reported on the balance sheet and

contains the cost of products purchased for sale.

Merchandise inventory is an expense account reported on the income

statement and contains the cost of products purchased for sale.

Merchandise inventory is increased when products are sold to

customers.

Merchandise inventory is subtracted from net sales on the income

statement to determine gross profit for the period.