If an organization purchases $2,100 of supplies on account, with terms of 2/15, n50:
A) $1,950 must be paid within 15 days of the invoice date.
B) $2,094 must be paid within 50 days of the invoice date.
C) $2,058 can be paid within 15 days of the invoice date, or $2,100 must be paid within 50 days of the invoice date.
D)$2,058 can be paid within 15 days of the invoice date, or $2,142 must be paid within 50 days of the invoice date.

Question

Quizplus · Accepted Answer

According to the terms of 2/15, n50, the organization can take a 2% discount if they pay within 15 days of the invoice date, or they can pay the full amount within 50 days. Therefore, the best choices are either to pay $2,058 within 15 days, taking advantage of the discount, or to pay the full $2,100 within 50 days.

If an Organization Purchases $2,100 of Supplies on Account, with Terms