BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The terms of sale 1/10, n/30 means that 1/10 or 10% of the invoice amount may be deducted if paid within 30 days. The total of accounts in the accounts payable subsidiary ledger equals the balance of the controlling account, Accounts Payable. The contra account Purchases Discount has a normal debit balance.

Detailed explanation-2: -What Is 1%/10 Net 30? 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: -The discount terms are 1/10, n/30 which indicates a 1% discount if paid within 10 days, but the full amount is due without a discount thereafter and payment is considered overdue 30 days after the invoice date. Since the bill is paid 10 days after the invoice date, the discount applies.

Detailed explanation-4: -What is 2/10 net 30? 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-5: -1/15 net 30 date of invoice translates as. a) a 1 percent discount may be taken on 15 percent of the purchase if the account is paid within 30 days after the end of the month. b) a 1 percent cash discount may be taken if paid in 15 days; if no cash discount is taken, the balance is due 30 days after the invoice date.