Homework Answers
1) Credit terms 2/10, n/30 mean
Buyer Can deduct 2% discount if payment made within 10 days but full payment have to made within 30 days
So answer is b) The buyer Can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date
2) Journal entry
| No | General Journal | Debit | Credit |
| Merchandise inventory | 300 | ||
| Account payable | 300 | ||
So answer is c) Debit merchandise inventory $300; Credit account payable $300
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