Question

Sally's Supply orders $3,256 worth of merchandise. Her invoice states 5/10, net 60. How much will she owe if she pays within 10 days and how much will she owe if she pays within 60 days?

Answer 1

5/10 net 60 means there is a 5% discount if paid within ten days, and the full amount is due within 60 days.

If she pays in 10 days:

3256 - (.05 * 3256)

3256 - 162.80= $3093.20

If she pays in 60 days:

Full balance of $3256 is due