What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. B. Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. C. A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. D. Interest of 10 percent will be charged if invoice is paid after two days

What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date. B. Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice. C. A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date. D. Interest of 10 percent will be charged if invoice is paid after two days

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 21MC: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an...

See similar textbooks

Similar questions

5
6. A loan of $2500 is taken out on May 12. It is to be paid back within a 1-year period with partial payments of $1000 on August 26, $40 on November 19, and $350 on January 9. If the rate of interest is 8%, what is the final balance due on March 20 by the Declining Balance Method? By the Merchant's Rule? Discount Dat-
On a 365-day basis, if payment is made on the twentieth day under trade credit terms of 2/10, net 30. How many compunding periods are there in
If you sign a discount note for $9,500 at a bank discount rate of 9% for 3 months, what is the effective interest rate (as a %)?
If the annualized cost of the trade credit discount is 7.37%, what is the net trade credit period? Assume a discount percentage of 1% for payments received on or before 20 days. Select one: a. 20 days b. 30 days c. 50 days d. 70 days
If a credit card you are interested in has an APR of 24%, what would the Daily Periodic Rate (DPR) be? (express your answer as a percent) 0.24% 0.000658% O 2% O 0.0658%
What is the APR if the monthly rate of interest a credit card company charges on outstanding balances is 1.62%? Select one: O a. APR =(1.0162)^12) -1 = 0.2127, and APR = 21.27% O b. APR = ((1.0162)^7) - 1 = 0.1191, and APR = 11.91% O C. APR =((1.0162)^52) - 1 = 1.3063, and APR = 130.63%
The face value of a simple discount note is $17,000. The discount is 4% for 160 days. Calculate the following.a. Amount of interest charged for each note. (Round your answer to the nearest cent.) Amount of interest b. Amount borrower would receive. (Round your answer to the nearest cent.) Amount receive c. Amount payee would receive at maturity. Amount receive at maturity d. Effective rate (Round your answer to the nearest tenth percent.) Effective rate %
Establish a line of credit with the bank at an intrest rate of 10%. The bank will charge a fee of 1% to establish a line of credit. Calculate Actual percentage cost of line of credit
A bank wishes to earn a 17% simple interest in discounting notes. If the term of the discount is 3 years and 9 months, what simple discount rate should be used?
A note with a face value of $4300 is discounted at 3%. If the discount was $21, find the length of the loan in days?
If a credit card you are interested in has an APR of 24%, what would the Daily Periodic Rate (DPR) be? Express your answer as a percent. A. .000658% B. . 0658% C. . 24% D. 2%