Today, October 12, Nadine's Fashions purchased merchandise from a supplier. The credit terms are 2/10, net 30. By what day does Nadine's have to make the payment to receive the discount? Assume a 30-day month.

Question

Quizplus · Accepted Answer

The credit terms 2/10, net 30 means that Nadine's Fashions has a 2% discount available if they pay within 10 days, otherwise, the full amount is due in 30 days. 
To calculate the last day to receive the discount, we take the number of days in the discount period (10) and subtract it from the full credit period (30). 
30 - 10 = 20 
So Nadine's Fashions must make the payment within 20 days to receive the discount. 
We start counting from the invoice date of October 12, so the last day to receive the discount is:
October 12 + 20 days = October 22 
Therefore, the best choice is C: October 22.

Today, October 12, Nadine's Fashions Purchased Merchandise from a Supplier