If an organization purchases $700 of supplies on account, with terms of 2/15, n50:
A) $650 must be paid within 15 days of the invoice date.
B) $698 must be paid within 50 days of the invoice date.
C) $686 can be paid within 15 days of the invoice date, or $700 must be paid within 50 days of the invoice date.
D) $686 can be paid within 15 days of the invoice date, or $714 must be paid within 50 days of the invoice date.

Question

Quizplus · Accepted Answer

The terms 2/15, n50 mean a 2% discount is available if paid within 15 days. $700 - 2% of $700 = $686. If not paid within 15 days, the full $700 is due within 50 days.

If an Organization Purchases $700 of Supplies on Account, with Terms