Dollar Co. sold merchandise to Pound Co. on account, $25,500, terms 2/15, net 45. Pound Co. paid the invoice within the discount period. What is the amount of sales from the above transactions?

Question

Quizplus · Accepted Answer

The terms 2/15 mean a 2% discount is available if the invoice is paid within 15 days. Pound Co. paid within this period, so they receive a 2% discount on $25,500, which is $510. Therefore, the sales amount is $25,500 - $510 = $24,990.

Dollar Co Sold Merchandise to Pound Co