Merchandise subject to terms 210 n30 FOB shipping point is s

Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $17,700. What is the amount of sales discount allowable? $172 $126 $181

Solution

Answer

* The discount term is \"2/10, n/30\", which means that if payment is made within \"10 days\" of invoice, the customer will get \"2%\" cash discount.

* Amount of credit sale = $ 17,700

* Maximum discount if payment received within 10 days = $ 17,700 x 2% = $ 354

* Hence, correct answer is $ 354 [Option 2]