An invoice for office furniture for $1,210.88 with terms of 2/10, n/60 is dated October 3.
(A)What is the last date on which the cash discount may be taken?
(B)If paid within discount period, how much is the cash discount?
(C)If the discount is missed, on what day does the credit period end?

Question

Quizplus · Accepted Answer

Add 10 days to the invoice date to get October 13 as the last date of the cash discount rate. Multiply the invoice amount by 2% to determine what cash discount could be allowed. 60 days past October 3 means the credit period ends on December 2.

An Invoice for Office Furniture for $1,210