A retailer buys merchandise from a supplier with an invoice amount of $12,800. The terms of the sale are 6/20, n/30. What is the net amount due (in $) on the order if the bill is paid by the 20th day? $ 12,672

A retailer buys merchandise from a supplier with an invoice amount of $12,800. The terms of the sale are 6/20, n/30. What is the net amount due (in $) on the order if the bill is paid by the 20th day? $ 12,672

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter6: Merchandising Transactions

Section: Chapter Questions

Problem 4Q: If a retailer made a purchase in the amount of $350 with credit terms of 2/15, n/60. What would the...

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Question

A retailer buys merchandise from a supplier with an invoice amount of
$12,800. The terms of the sale are 6/20, n/30. What is the net amount due
(in $) on the order if the bill is paid by the 20th day?
$ 12,672
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Expert Solution

Step 1

6/20 net 30 means that 6 percent discount will be given if payment is made with in 20 days and no discount will be given if payment is made after 20^th day but before 30^th day.

Last date of payment is 30^th day from the date of purcase.

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