Coffski, Inc. sold merchandise to a customer on credit. The invoice amount was $1,000; the invoice date was June 10th; credit terms were 1/10, n/30. Which of the following statements is true?

Question

Quizplus · Accepted Answer

The credit terms 1/10, n/30 mean the customer can take a 1% discount if the invoice is paid within 10 days (by June 20th), otherwise, the net (full) amount is due within 30 days (by July 10th). Therefore, if paid on July 9th, the customer should pay the original amount of $1,000.