Company X sells $400 of merchandise on account to Company Y with credit terms of 2/10, n/30. If Company Y remits a check taking advantage of the discount offered, what is the amount of Company Y's check?
A) $280
B) $392
C) $360
D) $320

Question

Quizplus · Accepted Answer

The discount offered is 2%, and it is offered if the payment is made within 10 days. 
Thus, the discounted amount = 400*(2/100) = $8
The amount to be paid after the discount = 400 - 8 = $392.

Company X Sells $400 of Merchandise on Account to Company