Asked by
Ankit Kumar Garg
on Nov 15, 2024
Verified
If merchandise costing $2,500, terms 2/10 n/30, is paid within 10 days, the amount of the purchase discount is $250.
Purchase Discount
A reduction in the purchase price, offered by the seller to the buyer, as an incentive for early payment.
Terms 2/10 n/30
Payment terms indicating a 2% discount if paid within 10 days, otherwise the full amount is due within 30 days.
- Calculate purchase discounts and comprehend their effect on inventory costs and accounting records.
Verified Answer
JG
Learning Objectives
- Calculate purchase discounts and comprehend their effect on inventory costs and accounting records.