Company A sells $2,500 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 offered is 2% of $2,500 if paid within 10 days. So, the discount amount is $2,500 * 2% = $50. Therefore, the amount of Company B's check after taking advantage of the discount is $2,500 - $50 = $2,450.

Company a Sells $2,500 of Merchandise on Account to Company