Problema Solution
Amount of invoice is $12660.00 with terms of sale 2/10, n/45 what is the cash discount and the net due
Answer provided by our tutors
The term 2/10, n/45 means the following:
"2" shows the discount percentage offered by the seller. In our case it is 2% of $12,660.00 or:
0.02*12660.00 = $253.2 is the cash discount.
"10" indicates the number of days (from the invoice date) within which the buyer should pay the invoice in order to receive the discount.
"n/45" states that if the buyer does not pay the (full) invoice amount within the 10 days to qualify for the discount, then the net amount is due within 45 days after the sales invoice date.