Question

An invoice for office furniture for $1,210.88 with terms of 2/10, 1/60 is dated October 3.

What is the last date on which the cash discount may be taken?

Cash discount taken on_____

Answer 1

Answer:

October 13

$24.22

Explanation:

Term of 2/10, 1/60 means that there is a cash discount of 2% available if the payment is mad within 10 days with credit term of 60 days. The last day of discount period is October 13. The discount amount is $24.22.

Invoice amount = 1,210.88

Discount rate = 2%

Discount amount = 1,210.88 x 2%

Discount amount = $24.22