Question

on february 3, a company provides services on account for $26,500, terms 2/10, n/30. on february 9, the company receives payment from the customer for those services on february 3.

Answer 1

The terms 2/10, n/30 mean there is a 2% discount available if payment is made within 10 days, and full payment is due within 30 days. The customer paid on February 9, which is within the discount period. The discounted amount is $530, so the customer pays $25,970.

Step-by-step explanation:

The terms 2/10, n/30 mean that there is a 2% discount available if payment is made within 10 days, and the full payment is due within 30 days. In this case, the company provided services on account for $26,500 on February 3. The customer paid on February 9, which is within the discount period.

To calculate the discounted amount, we multiply the total amount by the discount percentage:

Discounted amount = $26,500 x 2% = $530

So, the customer pays $26,500 - $530 = $25,970.