An invoice of $237.50 dated April 2 is subject to credit terms of 2/10, n/30. The amount to be paid if the invoice is paid on or before April 12 is

Question

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To calculate the amount to be paid if the invoice is paid on or before April 12, we need to apply the discount offered for early payment. In this case, the terms are 2/10, n/30. This means that the buyer can take a 2% discount if the invoice is paid within 10 days (on or before April 12) or pay the full amount within 30 days (by May 2).

To determine the amount to be paid if the invoice is paid on or before April 12, we need to subtract the discount from the total amount due:

Discount = 2% of $237.50 = $4.75
Amount to be paid if paid within discount period = $237.50 - $4.75 = $232.75

Therefore, the correct answer is C, $232.75.

An Invoice of $237