Vern Corp.sold merchandise to a customer on credit.The invoice amount was $2,000;the invoice date was June 10;credit terms were 1/20,n/30.Which one of the following statements is true?

Question

Quizplus · Accepted Answer

The credit terms 1/20, n/30 mean the customer can take a 1% discount if the invoice is paid within 20 days, otherwise the net (full) amount is due within 30 days. Therefore, paying $2,000 on July 9 (within 30 days) is correct, without any discount or penalty.

Vern CorpSold Merchandise to a Customer on Credit