An invoice for an amount of $600 for merchandise purchased is showing 2/15, n/30 as terms of credit. If the invoice is paid on or before the fifteenth day, the amount to be paid is:
A)$588.
B)$600.
C)$612.
D)$615.

Question

Quizplus · Accepted Answer

2/15 means that if the invoice is paid within 15 days, the buyer can take a 2% discount. Therefore, the amount to be paid is $600 - (2% of $600) = $588.

An Invoice for an Amount of $600 for Merchandise Purchased