Company A sells $500 of merchandise on account to Company B with credit terms of 2/10, n/30. If Company B remits a check taking advantage of the discount offered, what is the amount of Company B's check?

Question

Quizplus · Accepted Answer

The credit terms 2/10, n/30 mean that Company B can take a 2% discount if they pay within 10 days. The discount on $500 is $10 (2% of $500), so the amount of the check would be $500 - $10 = $490.

Company a Sells $500 of Merchandise on Account to Company