A small retailer buys goods from a vendor with an invoice amount of $9,100. The terms of the sale are 2/10, n/30. What is the net amount due on the goods if the bill is paid by the 10th day?

Question

Quizplus · Accepted Answer

The terms 2/10, n/30 mean that the buyer can take a 2% discount if the invoice is paid within 10 days. Therefore, the discount is $9,100 * 2% = $182. The net amount due after the discount is $9,100 - $182 = $8,918.

A Small Retailer Buys Goods from a Vendor with an Invoice