If a customer purchases $500.00 in merchandise on account, and the terms are 2/10, n/30, what would the customer owe if he were to pay the balance on the 9th day

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Business

Pyscho

28 January, 07:03

If a customer purchases $500.00 in merchandise on account, and the terms are 2/10, n/30, what would the customer owe if he were to pay the balance on the 9th day

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Agustin Molina · Answer 1

In accounting, the invoice 2/10, n/30 means that the customers has to pay $500 within 30 days. If he can pay earlier, say within 10 days from the date of purchase, a cash discount of 2% is given. If the customer pays on the 9th day, he would only have to pay

500 (100% - 2%) = $490