1. Merchandise purchased on Feb 1 with credit terms of 2/10, n/30, must be paid sooner than with credit terms of n/10 EOM. 2. When merchandise inventory is purchased with credit terms of 1/15, n/60, the credit period is 60 days from date of the invoice.
1. Merchandise purchased on Feb 1 with credit terms of 2/10, n/30, must be paid sooner than with credit terms of n/10 EOM. 2. When merchandise inventory is purchased with credit terms of 1/15, n/60, the credit period is 60 days from date of the invoice.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Answer true or false for both statement.
Transcribed Image Text:1. Merchandise purchased on
Feb 1 with credit terms of 2/10,
n/30, must be paid sooner
than with credit terms of n/10
EOM. 2. When merchandise
inventory is purchased with
credit terms of 1/15, n/60, the
credit period is 60 days from
date of the invoice.
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