A new business receives an invoice for merchandise on August 9. The terms of the sale are 12/10, n/30. If the manager elects to take the cash discount, what is the discount date?

Question

Quizplus · Accepted Answer

The discount date is August 19 because the terms 12/10, n/30 mean the business can take a 12% discount if it pays within 10 days of the invoice date, which is August 9. Adding 10 days to August 9 gives August 19.

A New Business Receives an Invoice for Merchandise on August