Floors, Inc.offers terms of 2/10, n/30 to credit customers.Tile Magic Corp.purchased 100 tile cutters with a list price of $20 each on August 5, 2016, on account.Tile Magic Corp.paid the invoice on August 31, 2016.How much sales discount will Floors recognize?
A) $ 40
B) $ -0-
C) $ 200
D) $ 236

Question

Quizplus · Accepted Answer

Tile Magic Corp. did not pay within the 10-day discount period of the 2/10, n/30 terms, so they are not eligible for the sales discount. They paid on August 31, which is beyond the 10 days from August 5.