Question

2. Merchandise from the vendor carries an invoice of July 1 and is received on July 4. Terms are 2/10 net 30 EOM, and the invoice is for $5,000. What amount should be remitted if the retailer pays the bill on July 13?

Answer 1

The retailer would remit $4,900 to the vendor on July 13.

What is invoice date?

The invoice date is the date written on this which is the same as the date the goods were shipped to customer, in this case, invoice date  is July 1.

Invoice receipt date?

This is the date the customer received the invoice as well as the goods sent by the vendor, which is July 4 in this case.

2/10 means that a discount of 2% is available if the customer pays within the first 10 days, which starts counting from July 4, not July 1, because the customer actually received the invoice on July 4.

From July 4 to July 13 is a period of 10 days, which means that the 2% cash discount that customer would be entitled if payment is made within the first 10 days is still available

discount=2%*$5000

discount=$100

The retailer would remit the invoice price of $5,000 minus the discount.

amount remitted=$5000-$100

amount remitted=$4,900

Find out more about cash discount on :https://brainly.in/question/15641114

#SPJ1