Question

An invoice for office furniture for $1,210.88 with terms of 2/10, N60 is dated October 3. If the discount is missed, on what day does the credit period end?

Answer 1

The credit period for the invoice ends 60 days after the invoice date of October 3, which would be December 2.

Step-by-step explanation:

The invoice with terms of 2/10, N60 dated October 3 offers a 2% discount if the invoice is paid within 10 days. The credit period of 'Net 60' (N60) means the full invoice amount is due within 60 days, without any discount. The credit period will end 60 days after the invoice date. Since the invoice is dated October 3, the credit period will end on December 2. So, if the discount is missed, the last day to pay without incurring any additional penalties is 60 days after the invoice date, which would be December 2.