Grinn,Inc.offers terms of 2/10,n/30 to credit customers.Great Buy Corp.purchased 100 tile cutters with a list price of $20 each on March 5,2017,on account.If Great Buy Corp.pays the amount of the invoice for its purchase on March 14,2017,how much cash will Grinn receive from Great Buy Corp.?

Question

Grinn,Inc.offers terms of 2/10,n/30 to credit customers.Great Buy Corp.purchased 100 tile cutters with a list price of $20 each on March 5,2017,on account.If Great Buy Corp.pays the amount of the invoice for its purchase on March 14,2017,how much cash will Grinn receive from Great Buy Corp.? ​

Quizplus · Accepted Answer

Great Buy Corp. is eligible for a 2% discount because they are paying within 10 days. The total list price is 100 cutters x $20 = $2,000. The discount is 2% of $2,000, which is $40. Therefore, the cash received is $2,000 - $40 = $1,960.

Grinn,IncOffers Terms of 2/10,n/30 to Credit Customers