Merchandise is ordered on November 12;the merchandise is shipped by the seller and the invoice is prepared,dated,and mailed by the seller on November 15;the merchandise is received by the buyer on November 17;the transaction is recorded in the seller's accounts on November 15.If the credit terms are 1/10,n/30,the credit period begins with what date?

Question

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The credit period begins on the invoice date, which is November 15th, the same day the invoice was prepared, dated, and mailed by the seller. The credit terms of 1/10, n/30 indicate that the buyer can take a discount of 1% if they pay within 10 days of the invoice date, or they can pay the full invoice amount within 30 days of the invoice date. Therefore, the credit period ends 30 days after November 15th, which is December 15th.

Merchandise Is Ordered on November 12;the Merchandise Is Shipped by the Seller