A credit sale of $900 is made on July 15, terms 2/10, n/30, on which a return of $50 is granted on July 18. What amount is received as payment in full on July 24?

Question

Quizplus · Accepted Answer

The discount period ended on July 25 (10 days after July 15). Since payment was made on July 24, the discount of 2% is allowed. The amount of discount is $900 x 2% = $18. The amount received as payment in full is $900 - $18 = $882.

A Credit Sale of $900 Is Made on July 15