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

Question

An invoice for office furniture for $1,210.88 with terms of 2/10, N/60 is dated October 3.
(A) What is the last date on which the cash discount may be taken?
(B) If paid within discount period, how much is the cash discount?
(C) If the discount is missed, on what day does the credit period end?

An invoice for office furniture for $1,210.88 with terms of 2/10, N/60 is dated October 3. What is the last date on which the cash discount may be taken? If paid within discount period, how much is the cash discount? If the discount is missed, on what day does the credit period end?

Explanation / Answer

(A) 10 days from the invoice date, i.e. October 13

(B) discount = 2% of $1210.88 = $24.21

(C) 60 days from the invoice date, i.e. December 3

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