If an organization purchases $3,000 of supplies on account, with terms of 2/10, n30:
A)$2,880 must be paid within 10 days of the invoice date.
B)$2,994 must be paid within 30 days of the invoice date.
C)$2,940 can be paid within 10 days of the invoice date, or $3,000 must be paid within 30 days of the invoice date.
D)$2,940 can be paid within 10 days of the invoice date, or $3,060 must be paid within 30 days of the invoice date.

Question

Quizplus · Accepted Answer

The terms 2/10, n30 mean a 2% discount is available if paid within 10 days. Therefore, $3,000 - 2% = $2,940 if paid within 10 days, or the full $3,000 if paid within 30 days.

If an Organization Purchases $3,000 of Supplies on Account, with Terms