Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment was made within the 10-day time period. $60 $90 $900 $600
Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment was made within the 10-day time period. $60 $90 $900 $600
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![**Credit Terms and Sales Discount Calculation**
Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment was made within the 10-day time period.
**Options:**
- **A) $60**
- **B) $90**
- **C) $900**
- **D) $600**
**Explanation:**
The credit terms "3/10, n/30" mean the buyer can take a 3% discount on the invoice amount if the payment is made within 10 days; otherwise, the net (full) amount is due within 30 days.
To calculate the sales discount:
1. Calculate 3% of $2,000:
\[
\text{Discount} = \$2000 \times \frac{3}{100} = \$60
\]
Therefore, the correct option is A) $60.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa897fc34-ec0a-4e46-a54c-99548c0f8a55%2F20c2e5ed-c7e3-4a6b-a452-6d1aaee059cb%2Frfbuex7_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Credit Terms and Sales Discount Calculation**
Given credit terms of 3/10, n/30 on a sale of $2,000, calculate the sales discount, assuming payment was made within the 10-day time period.
**Options:**
- **A) $60**
- **B) $90**
- **C) $900**
- **D) $600**
**Explanation:**
The credit terms "3/10, n/30" mean the buyer can take a 3% discount on the invoice amount if the payment is made within 10 days; otherwise, the net (full) amount is due within 30 days.
To calculate the sales discount:
1. Calculate 3% of $2,000:
\[
\text{Discount} = \$2000 \times \frac{3}{100} = \$60
\]
Therefore, the correct option is A) $60.
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