Floors, Inc.offers terms of 2/10, n/30 to credit customers.Tile Magic Corp.purchased 100 tile cutters with a list price of $20 each on August 5, 2015, on account.
Tile Magic Corp.paid the invoice on August 31, 2015.How much sales discount will Floors recognize?

Question

Quizplus · Accepted Answer

Tile Magic Corp. paid the invoice after the discount period (2/10, n/30), which means they did not qualify for the 2% discount. Therefore, Floors, Inc. will not recognize any sales discount.