Floors,Inc.offers terms of 2/10,n/30 to credit customers.Tile Magic Corp.purchased 100 tile cutters with a list price of $20 each on August 5,2017,on account.Tile Magic Corp.paid the invoice on August 31,2017.How much sales discount will Floors recognize?

Question

Quizplus · Accepted Answer

Tile Magic Corp. paid the invoice on August 31, 2017, which is beyond the discount period of 10 days (2/10, n/30). Therefore, they do not qualify for the sales discount and Floors, Inc. will recognize $0 in sales discounts.