Sally is looking at an invoice dated July 1st for $1000 that has terms of 2/10; net 30. If she pays the bill on July 3rd how much should she write the cheque for?

Question

Quizplus · Accepted Answer

The terms 2/10 mean that there is a 2% discount if the bill is paid within 10 days. Therefore, if Sally pays on July 3rd, which is within 10 days, she can take advantage of the discount. To calculate the discount, we take 2% of $1000, which is $20. Then we subtract that from the total amount due: $1000 - $20 = $980. Therefore, Sally should write the cheque for $980.

Sally Is Looking at an Invoice Dated July 1st for $1000