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.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 13Q: If a customer purchased merchandise in the amount of $340, terms 3/10, n/30, returned $70 of the...

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Question

Answer true or false for both statement.

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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