The following terms appeared on an invoice dated May 20,sent by a manufacturer to a retail store: 2/10,net 30.The amount of the invoice was $2,000.Assuming the retailer paid the invoice on May 30 (10 days after the products were delivered),how much should he have paid?
A)$1,900
B)$1,800
C)$2,000
D)$1,960
E)$2,040

Question

Quizplus · Accepted Answer

The notation "2/10,net 30" means the buyer can take a 2 percent discount off the face value of the invoice if the invoice is paid within 10 days.Otherwise,the full face value is due within 30 days.Hence,the amount to be paid on May 30 would be $1,960.

The Following Terms Appeared on an Invoice Dated May 20,sent