Question

Sarah's Salon ordered $5,000 worth of merchandise from Cosprof, Inc. The invoice to Sarah's has a discount term of 2/10, net30. Sarah writes a check within ten days for_______

Answer 1

Sarah's Salon should write a check for $4,900 within ten days.

Step-by-step explanation:

The discount term of the invoice indicates that Sarah's Salon can receive a 2% discount if they pay within ten days, otherwise, the full amount is due within 30 days.

So, if Sarah's Salon pays within ten days, they can take advantage of the discount. The discount amount would be 2% of the $5,000 worth of merchandise, which is $100.

Therefore, if Sarah's Salon writes a check within ten days, they would pay $5,000 - $100 = $4,900.