On May,2,Breyer,Inc.purchases $25,000 of merchandise from a vendor with credit terms of 2/10,n/30.If Breyer pays the vendor on May 10,the amount of the payment should be ________.

Question

Quizplus · Accepted Answer

The credit terms 2/10, n/30 mean that the vendor offers a 2% discount if the payment is made within 10 days from the date of purchase, otherwise the full amount is due within 30 days. 
So, if Breyer pays within 10 days, they can take a 2% discount on the purchase of $25,000. 
2% of $25,000 is $500, so the payment amount with discount would be $25,000 - $500 = $24,500.