Company A sells ¥8,000 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 ¥8,000 is ¥160 (2% of ¥8,000), so the amount of the check would be ¥8,000 - ¥160 = ¥7,840.

Company a Sells ¥8,000 of Merchandise on Account to Company