Company A sells ¥5,000 of merchandise on account to Company B with credit terms of 2/10, n/30.If Company B remits a check taking advantage of the discount offered, what is the amount of Company B's check?

Question

Quizplus · Accepted Answer

The discount terms 2/10 mean a 2% discount is available if payment is made within 10 days. The discount on ¥5,000 is ¥100 (2% of ¥5,000), so Company B's check would be for ¥4,900 (¥5,000 - ¥100).

Company a Sells ¥5,000 of Merchandise on Account to Company