Question

Kurt Company purchased $5,000 of merchandise from Marilyn Company with terms of 2/10, n/40. What percent discount will Kurt Company get if it pays within the allowed discount period? Answer % If Kurt Company fails to pay within the discount period, how many days does Kurt Company have from the date of purchase before the payment is considered to be late? Answer days

Answer 1

Answer:

(a) 2%

(b) 40 days

Explanation:

given data

purchased = $5,000

solution

we have given term 2/10, n/40

so payment is done with in 10 days from date of purchase

so 2 % discount is allowed

and

term show that due date for payment is 40 days from date of purchase

if we not done with in limit

so it is consider as a late