Sterling Industries offers customers cash discounts for paying their bills within 10 days. Assume a Sterling Industries customer purchases $10,000 worth of goods on October 1 and the cash discount is "2/10 net 30." If the customer pays his bill on October 9, the amount due will be $9,000.

Question

Quizplus · Accepted Answer

The correct amount due would be $9,800 because a 2% discount on $10,000 is $200, so $10,000 - $200 = $9,800.

Sterling Industries Offers Customers Cash Discounts for Paying Their Bills