Company P sells $3000 of merchandise on account to Company Q with credit terms of 2/10 n/30. If Company Q remits a check taking advantage of the discount offered what is the amount of Company Q's check?
A) $2100
B) $2400
C) $2700
D) $2940

Question

Quizplus · Accepted Answer

The credit terms 2/10 n/30 mean that Company Q can take a 2% discount if they pay within 10 days. The discount on $3000 is $60 (2% of $3000), so the amount of the check would be $3000 - $60 = $2940.

Company P Sells $3000 of Merchandise on Account to Company