Question

Virginia supply offers their customers trade credit with terms 2/15, net 30. this implies that:

Answer 1

2/15, net30 means that:

2% discount for payments within 15 days and the full amount to be paid within 30 days.

Further explanation

Do you know the credit terms on sales invoices such as 2/15, net30? Simply put, 2/15, net30 on an invoice is a discount given by the seller to the buyer for a fast payment term. Calculation 2/15, net30 is part of the payment terms in the accounting world.

Payment terms are agreements between the seller and the buyer for the payment of merchandise purchased. Payment terms relate to cash deductions, payment terms, and the number of deductions given.

In principle, payments on purchase/sale transactions can be made by:

• Cash/cash. This means that payment is made when the goods are handed over by the seller to the buyer. This transaction is known as a cash purchase/sale transaction.
• Credit/term of payment. This means that payment is made sometime after the goods are delivered based on a period determined by the seller. This transaction is called a credit purchase/sale transaction.

Meaning of Terms 2/15, net30

Payment terms are usually stated on the invoice in the following terms:

2: is a percentage of the discount offered by the seller.

15: shows the number of days (from the invoice date) in which case the buyer must pay an invoice to receive a discount.

net30: is a calculation if the buyer does not pay the full invoice amount within 10 days as a condition of the discount. Therefore, the net amount of payment due must be due within 30 days after the date of the sales invoice.

In the payment terms, there are deductions for a certain period that are calculated in percent. Late payments will usually incur the same amount in percent.

Therefore payments must be by the payment terms that have been made. In accounting, cash discount/discount is a cost that is intended for the seller. The term used to recognize the cost of the discount is known as a sales discount or sales discount.

Learn more

Invoice payment terms brainly.com/question/14272334, brainly.com/question/12313292

Details

Class: College

Subject: Business

Keyword: meaning 2/15, net30

Answer 2

This implies that 2%/15 net 30 is a method of giving cash discounts on purchases. What this means is that if the bill is paid within 15 days, there is a 2% discount. Or else, the total amount is payable within 30 days. For instance, if "$1000 2/15 net 30" is printed on a bill, the buyer can take a 2% discount ($1000 x .02 = $20) and make a payment of $980 within 15 days or pay the whole $1000 in 30 days.