Asked by Vasavi Arunachala Pandian on May 22, 2024
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The terms 2/10 n/30 state that a 2% discount is available if the invoice is paid within the first 10 days of the next month.
Terms 2/10 N/30
Terms 2/10 N/30 is a commercial credit term indicating that a buyer can deduct 2% of the invoice amount if payment is made within 10 days; otherwise, the full invoice amount is due in 30 days.
Invoice Paid
A financial transaction where an invoice has been settled or fulfilled, indicating that the billed goods or services have been paid for by the recipient.
Discount
A discount refers to a reduction from the usual cost of goods or services, often used as a marketing strategy to increase sales or reward customers.
- Understand the accounting procedures for handling sales returns, allowances, and discounts.
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Learning Objectives
- Understand the accounting procedures for handling sales returns, allowances, and discounts.
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