Credit Terms Quiz
The Supplier issued an invoice of $100 on 1-October-2014 with the payment terms of 2/10, n/30. The amount Paid by the Buyer on 8th October 2014 was $____?
C) $ 98
Explained – Credit Terms Quiz
The payment terms of 2/10 & n/30 by the seller clearly suggests the credit terms, it means that the payment is due within 30 days from the date of invoice & if the buyer wants to avail the discount he can get 2% discount on payment within 10 days from the invoice date.
Since he paid within 10 days he got 2% discount from the supplier that is $2. Net payment made by him was $98.