Question

For medical waste services, record the service on account of $10,700 on March 12, with terms 2/10, n/30. What is the amount to be paid if the payment is made within the discount period?

1) $10,700
2) $10,500
3) $10,400
4) $10,200

Answer 1

If the service on account of $10,700 is paid within the discount period, the amount to be paid is $10,486.

Step-by-step explanation:

If the service on account of $10,700 is paid within the discount period, the amount to be paid will be less than the original amount. The terms 2/10, n/30 mean that a 2% discount is given if the payment is made within 10 days, otherwise the full amount is due within 30 days. To calculate the amount to be paid within the discount period, we need to subtract the discount from the original amount.

1. Calculate the discount amount: $10,700 x 0.02 = $214
2. Subtract the discount amount from the original amount: $10,700 - $214 = $10,486

Therefore, the amount to be paid if the payment is made within the discount period is $10,486.