An accounts payable officer received a bill for $3010, dated July 9, with sales terms 4 / 10, n / 30. Find the cash discount and amount due if the bill was paid July 29.

Question

Quizplus · Accepted Answer

The terms 4/10, n/30 mean that a 4% discount is available if the bill is paid within 10 days; otherwise, the net (full) amount is due within 30 days. Since the bill was paid on July 29, which is outside the 10-day discount period, no discount applies.

An Accounts Payable Officer Received a Bill for $3010, Dated