BUSINESS ADMINISTRATION
FINANCIAL ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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$1000
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$990
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$980
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$20
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Detailed explanation-1: -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-2: -The discount terms are 1/10, n/30 which indicates a 1% discount if paid within 10 days but the full amount is due otherwise. Since the bill is paid on the tenth day (or sooner), the buyer gets the 1% discount.
Detailed explanation-3: -Explain what the credit terms of 2/10, n/30 mean.-The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date.-The full payment is due within a 30 day credit limit.
Detailed explanation-4: -BusinessAccountingCredit terms are 1/10, n/30 indicates that the buyer is allowed a 10% discount if payment is made within 30 days allowed a 1% discount if payment is made within 10 days allowed a 1% discount if payment is made within 30 days allowed a 30% discount if payment is made within 10 days.