College Accounting (Book Only): A Career Approach
13th Edition
ISBN: 9781337280570
Author: Scott, Cathy J.
Publisher: South-Western College Pub
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Textbook Question
Chapter 9, Problem 5QY
What does the “2” in 2/10, n/30 mean?
- a. Pay in 2 days to ensure early payment
- b. 2% discount for early payment within 10 days
- c. 2% extra payment due if paid between 10 days and 30 days
- d. $2 discount if paid within 10 days
- e. None of the above
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Students have asked these similar questions
In the credit terms 1/10, n/30, what does the "1" represent?
Group of answer choices
number of days when the entire amount is due
number of days in the discount period
full amount of the invoice
1% cash discount if paid within the credit period
What does "2/10" mean, with respect to "credit terms of 2/10, n/30"?
A.
A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.
B.
Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice.
C.
A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date.
D.
Interest of 10 percent will be charged if invoice is paid after two days.
Which of the following terms of trade credit is the more expensive?
a. A 3 percent cash discount if paid on the 15th day with bill due on the 45th day (3/15, net 45)
b. A 2 percent cash discount if paid on the 10th day with the bill due on the 30th day (2/10, net 30)
Chapter 9 Solutions
College Accounting (Book Only): A Career Approach
Ch. 9 - Which of the following is true about the Sales...Ch. 9 - What is the accounts receivable ledger? a. A...Ch. 9 - Using the information contained in the accounts...Ch. 9 - Prob. 4QYCh. 9 - What does the 2 in 2/10, n/30 mean? a. Pay in 2...Ch. 9 - Prob. 6QYCh. 9 - The schedule of accounts payable lists each...Ch. 9 - If the seller assumes the entire cost of...Ch. 9 - Under the perpetual inventory system, how does the...Ch. 9 - Purchases on account of merchandise for resale...
Ch. 9 - What is the difference between a wholesale...Ch. 9 - For each of the following accounts, identify...Ch. 9 - Prob. 3DQCh. 9 - Why is an accounts receivable ledger or an...Ch. 9 - Why is it a good practice to post daily to the...Ch. 9 - Prob. 6DQCh. 9 - Prob. 7DQCh. 9 - Prob. 8DQCh. 9 - Prob. 9DQCh. 9 - Prob. 10DQCh. 9 - Prob. 11DQCh. 9 - Prob. 12DQCh. 9 - Record the following transactions in general...Ch. 9 - Post the following entry to the general ledger and...Ch. 9 - Record the following transactions in general...Ch. 9 - Journalize the following transactions in general...Ch. 9 - Post the following entry to the general ledger and...Ch. 9 - Record the following transactions in general...Ch. 9 - Record the following transactions for a perpetual...Ch. 9 - Toby Company had the following sales transactions...Ch. 9 - Williams Corporation had the following purchases...Ch. 9 - Kelley Company has completed the following October...Ch. 9 - Bell Florists sells flowers on a retail basis....Ch. 9 - Berrys Pet Store records purchase transactions in...Ch. 9 - Shirleys Beauty Store records sales and purchase...Ch. 9 - The following transactions relate to Hawkins,...Ch. 9 - Gomez Company sells electrical supplies on a...Ch. 9 - Patterson Appliance uses a three-column purchases...Ch. 9 - Prob. 1PBCh. 9 - Lowerys Pet Depot records purchase transactions in...Ch. 9 - Mays Beauty Store records sales and purchase...Ch. 9 - The following transactions relate to Khan, Inc., a...Ch. 9 - Prob. 5PBCh. 9 - West Bicycle Shop uses a three-column purchases...Ch. 9 - Prob. 1ACh. 9 - You are the bookkeeper at a small merchandising...Ch. 9 - Following is a trial balance prepared just before...Ch. 9 - Sales and Purchases Ms. Valli of All About You Spa...
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- What do credit terms of 2/10, n/30 mean? 210 days to pay on time or 30 days before going to collection. 2 percent discount if paid within 10 days, but 30 days to pay on time 210 days to pay with a discount, net 30 days to pay after the discount period 210 percent discount if paid within 30 days None of the abovearrow_forwardCalculate the nominal annual cost of no free trade credit under each of the following terms. Assume that payment is made either on the discount date or on the due date. a. 1/15, net 20 b. 2/10, net 60 c. 3/10, net 45 d. 2/10, net 45 e. 2/15, net 40arrow_forwardFrom the payment terms, 2/15, n/30, the discount period is ___________. a. 17 days b. 15 days c. 30 days d. 2 daysarrow_forward
- Provide solution for this questionarrow_forwardIn credit terms of 3/15, n/45, the "3" represents the Oa. full amount of the invoice Ob. number of days in the discount period Oc. number of days when the entire amount is due Od. percent of the available discount for early payment 4arrow_forwardQ26arrow_forward
- Calculate the missing information for the installment loan that is being paid off early.arrow_forwardIf a credit card you are interested in has an APR of 24%, what would the Daily Periodic Rate (DPR) be? (express your answer as a percent) 0.24% 0.000658% O 2% O 0.0658%arrow_forwardSo-called 6-month or 12-month same-as-cash offers allow you to pay off the whole balance within a certain time-frame and not pay any interest. This is still considered what? a. Credit b. Debt c. Lay-away d. Owed Income e. Money Orderarrow_forward
- Calculate the APR and rEAR of non-free trade credit associated with credit terms of 3/20, net 65, and 2.5/15, net 75, assuming that customers who do not take the discount pay on the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places. Credit terms of 3/20, net 65 2.5/15, net 75 APR % % rEAR % % delay payment until 15 days after the last due date. Assume there are 360 days in a year. Do not round intermediate calculations. Round your answers to two decimal places. Credit terms of 3/20, net 65 2.5/15, net 75 APR % % rEAR % %arrow_forwardCalculate the missing information for the installment loan that is being paid off early. Number of Payments Payments Payments Made Remaining 36 23 Sum-of-the- Digits Payments Remaining Sum-of-the- Digits Number of Payments Rebate Fractionarrow_forwardSubject - account Please help me. Thankyou.arrow_forward
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