On December 5, jenifer sold $3,000 worth of merchandise on account to breach mar with a 10 days term at 2% discount rate. the amount to be received by jenifer on the due date is:
$3,000
$3,060
$2,940
$60

Question

On December 5, jenifer sold $3,000 worth of merchandise on account to breach mar with a 10 days term at 2% discount rate. the amount to be received by jenifer on the due date is: 
$3,000
$3,060
$2,940
$60

rissyroo118 · Answer

@mathmate :)

rissyroo118 · Answer

i will be giving a medal!!

chrishogan · Answer

Okay first we need to find what 2% of $3000 is. Do you have any ideas what it is?

chrishogan · Answer

Hello? You there?

rissyroo118 · Answer

3000x0.2=600 @ChrisHogan

chrishogan · Answer

Correct. Now she did this in a matter of 10 days, so how would you get to $600 in 10 days? You'd need to divide them, right? :)

rissyroo118 · Answer

the answer would come too $60? :)

rissyroo118 · Answer

@ChrisHogan

rissyroo118 · Answer

@mathmate

mathmate · Answer

In accounts receivable, the most common term is net 30 days, which means that amount owing must be paid within 30 days before interest will be charged.

To improve cash flow, and to encourage customers to pay early, suppliers often offer a discount in exchange for early payment.  A very common practice is to offer 2% discount if the account is paid within 10 days.  This is called 2%/10 net 30 days.

I believe the question refers to 2%/10 net 30 days even though it is not explicitly mentioned.  Since the due date is actually 30 days, customer does not get the discount, so the amount to be paid on due date is whatever is owing.

Note that the due date is not mentioned, but does not change the amount either.

rissyroo118 · Answer

so the answer would be $60? was i correct

rissyroo118 · Answer

@mathmate

mathmate · Answer

Sorry, $60 is not the answer.

"On December 5, jenifer sold $3,000 worth of merchandise on account to breach mar with a 10 days term at 2% discount rate. the amount to be received by jenifer on the due date is"

The question summarizes to:
"Jennifer sold $3000 worth of merchandise.  On due date, how much should she receive?"

rissyroo118 · Answer

okay then i would think if she sold $3,000 worth of merch she'd owe the same amount so 3,000

rissyroo118 · Answer

@mathmate

mathmate · Answer

Yes, $3000 on the due date, 2960 (after a 2% discount) within 10 days, and more than $3000 $after$ the due date.