Cash Discount And Its Notation
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I saw on my supplier invoice with a notation of “ 2/10,n/30 ” . What does this mean? |
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Answer: Some companies offer their customers an incentive to get them to pay their bills faster. This is called a cash discount. See earlier article on the difference between cash discount and trade discount When the selling company offers a cash discount, the discount will be specified on the invoice usually with a notation that reads like 2/10, n/30 which means ” 2 percent if paid within ten days; otherwise full payment expected in 30 days” The selling company can adjusts the notation to reflect the terms it is offering like for example:
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Related Posts
- Accountancy Mathematics: Cash Discount (Part 1 of 3)
- Accountancy Mathematics: Cash Discount (Part 3 of 3)
- Accountancy Mathematics: Cash Discount (Part 2 of 3)
- Difference/Distinction Between Cash Discount And Trade Discount
- Explain the term Cash Sales, Credit Sales, Purchases for cash and Purchases on Credit
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