Question

Jackson purchased $500 of goods and received credit terms of 2/10, n/30. How much did he pay if payment was made during the discount period?

Answer 1

the answer is D 490 thanks for the question

Answer 2

Answer:

Jackson made a payment of $490 to settle the transaction

Explanation:

The terms of 2/10, n/30 mean that if the buyer makes the payment within next ten days, he or she will receive a discount of 2 percent. However, if the buyer does not make the payment within the discount period, he or she would have to make the full invoice amount within the 30 days of purchase. Jackson made the payment within ten days (the discount period) and received a discount of 2% x 500 = $10 and therefore he made a payment of 500 - 10 = $490.