Exter Co. receives terms of 2/10, n/30 on all invoices from Garn Industries. On January 15, 2008, Exter purchased items from Garn for $4,200, excluding taxes and shipping costs. What amount would Exter use as the purchase discount if the invoice was paid on January 28, 2008?

Question

Quizplus · Accepted Answer

The purchase discount is only applicable if the invoice is paid within 10 days to receive a 2% discount. Since Exter paid on January 28, which is beyond the 10-day discount period, no discount is applied.

Exter Co Receives Terms of 2/10, N/30 on All Invoices from from Garn