Question

If a customer purchases $500.00 in merchandise on account, and the terms are 2/10, n/30, what would the customer owe if he were to pay the balance on the 9th day

Answer 1

In accounting, the invoice 2/10, n/30 means that the customers has to pay $500 within 30 days. If he can pay earlier, say within 10 days from the date of purchase, a cash discount of 2% is given. If the customer pays on the 9th day, he would only have to pay 

500(100% - 2%) = $490