Question

The list price of goods from mens wear to adya maha inc is 3568.89 the terms are 2/10 n/30 the date of the invoice is may 1 if the invoice is paid on may 12 what is the cash price?

Answer 1

Answer:

$3,568.89

Explanation:

By definition, the 2 10, Net 30 is a cash discount term where customers have 30 days to pay for a purchase but can receive a two percent discount if the entire purchase paid in full within ten days.

Hence, if the list price of goods from mens wear to adya maha inc is 3,568.89 the terms are 2/10 n/30 the date of the invoice is may 1

if the invoice is paid on may 12 then the price is the full amount of $3,568.89

Notice that if they had settled by May 10 it would have been $3,568.89 x 98% = $3,497.5