On July 10, Sellby Inc. purchased $1,000 of inventory on terms of 2/10, n/45. The amount due on July 31 is

Name: On July 10, Sellby Inc. purchased $1,000 of inventory on terms of 2/10, n/45. The amount due on July 31 is
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The terms 2/10, n/45 mean a 2% discount is available if payment is made within 10 days. Since the payment is due on July 31, which is beyond the 10-day discount period, the full amount of $1,000 is due.