On July 10, Swant Inc.purchased $1,000 of inventory on terms of 2/10, n/45.The amount due on August 25 is
A)$1,020.
B)$1,000.
C)$980.
D)$990.

Name: On July 10, Swant Inc.purchased $1,000 of inventory on terms of 2/10, n/45.The amount due on August 25 is A)$1,020. B)$1,000. C)$980. D)$990.
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

The payment terms 2/10, n/45 mean a 2% discount is available if paid within 10 days. Since the payment is made on August 25, which is beyond the discount period, the full amount of $1,000 is due.