Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
An invoice amounting to ₱10, 000.00 pesos dated August 1, bearing the following terms:5/10, 3/20, n/30. Compute the cash discount if you will pay it in 7 days?
 A 200 B 300 C 400 D 500 E None
Explanation:

Detailed explanation-1: -Cash discounts: shorthand In accounting, usually the discount amount and the time period within which it’s available, are expressed in a format such as 2/10, n/30. This means a 2% discount is applied if the invoice is paid within ten days, otherwise the payment is due in its entirety within 30 days.

Detailed explanation-2: -The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. It means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days.

Detailed explanation-3: -2/10 net 30 is a trade credit extended to the buyer from the seller. A buyer will receive a 2% discount on the net amount if they pay the invoice in full within the first ten days of the invoice date. Otherwise, the full invoice amount is due in 30 days without a discount.

Detailed explanation-4: -What is net 30? Net 30 is a term used on invoices to represent when the payment is due, in contrast to the date that the goods/services were delivered. When you see “net 30” on an invoice, it means that the client can pay up to 30 calendar days (not business days) after they have been billed.

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