Conan purchases chocolate having an invoice price of $23,700. The terms of sale are 20/11, n/30. What is the cash discount if the bill is paid by the 10th day?

Name: Conan purchases chocolate having an invoice price of $23,700. The terms of sale are 20/11, n/30. What is the cash discount if the bill is paid by the 10th day?
Brand: Quizplus
Rating: 4.8 (62 reviews)

Question

Quizplus · Accepted Answer

The cash discount is calculated as 20% of the invoice price because the terms 20/11, n/30 mean a 20% discount is available if paid within 11 days. So, $23,700 * 20% = $4,740.

Conan Purchases Chocolate Having an Invoice Price of $23,700