Question

The term of an invoice of $2800 were 2/10, 1/30, n/60. The buyer sent a part payment of $980 within 10 days and the balance due 15 days later. How much cash discount could be taken?

Answer 1

Discount on 980
980×0.02
=19.6
the rest
2,800−980
=1,820
Discount on the rest
1,820×0.01
=18.2
Cash discount
18.2+19.6
=37.8