Homework Answers
Answer: 1st option
2/10, n/30:
This indicates types of merchandise payments.
If paid within 10 days from the date of purchase, there would be a discount of 2%.
If the discount is not availed, the net amount is due to be paid in 30 days.
Net amount = Purchase – Returns
= 1,800 – 200
= $1,600
Purchased on 5th July and payment is made in 8th July; therefore, this is done within 10 days; discount is availed.
Discount amount = Net amount × 2%
= 1,600 × 2%
= $32
Cash payment = Net amount – Discount amount
= 1,600 – 32
= $1,568
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