If a $12,500 sale is made on September 21 with terms 2\10 net 30 and collection is made on October 2, the amount collected is:
A)$12,250
B)$10,000
C)$12,750
D)$12,500

Question

Quizplus · Accepted Answer

The terms 2\10 net 30 mean the buyer can take a 2% discount if the invoice is paid within 10 days; otherwise, the full amount is due in 30 days. Since the collection is made on October 2, which is within 10 days from September 21, the buyer can take a 2% discount on $12,500, which is $250 ($12,500 * 2% = $250). Therefore, the amount collected is $12,500 - $250 = $12,250.

If a $12,500 Sale Is Made on September 21 with Terms