Spring Co bought merchandise from All Co with terms 210 n30

Spring Co. bought merchandise from All Co. with terms 2/10, n/30. the discount is granted and that the merchandise cost $1,000. What is the discount based on the terms stated?

Solution

As per the terms 2/10, n/30.

merchandise cost $1,000

Dsicount is granted 2% so,

Discount = $1000 x 2% = $20