Question

Jackson ski equipment receives an invoice for $10,000 worth of merchandise from one of its suppliers. the invoice has discount terms of 2/10, net/60. twenty days later, jackson ski equipment writes a check for ____ to pay the invoice.

Answer 1

Answer: The correct answer is $10,000.

Explanation: When Jackson Ski Equipment made the purchase the terms were 2/10, net/60. This means that there is a 2% discount if they pay within 10 days, and the entire balance needs to be paid with 60 days. Since they are paying the invoice at 20 days they do not receive the 2% discount, so must pay the total price of $10,000.

Answer 2

The answer is $10,000.
discount terms of 2/10, net/60 indicates that the discount of 2% will only apply if the payment is being done within 10 days.
Since the payment is being done 20 days after, the full price of the purchase must be paid by Jackson Ski.