Dennis has made a purchase of R50 000 using trade credit with terms of 2/10 net 30.How much discount will he receive if the buyer pays the bill on the net due date?
A)R0
B)R500
C)R1 200
D)R3 000

Question

Quizplus · Accepted Answer

The terms 2/10 net 30 means that the buyer can receive a 2% discount if the bill is paid within 10 days, otherwise the full amount is due within 30 days. Since the buyer is paying on the net due date (30 days), there is no discount applicable. Therefore, the correct choice is A.

Dennis Has Made a Purchase of R50 000 Using Trade