can a buyer still avail the 2% discount if he/she partially paid the accounts receivable at the 5th day and the full payment is on the 10th day of the given discount period in this terms: 2/10 n/30?
To determine if the buyer can still avail the 2% discount in this scenario, we need to understand the terms of the discount period.
In this case, the terms are "2/10 n/30." Let's break it down:
- The first number, "2," represents the discount percentage.
- The second number, "10," represents the number of days within which the buyer needs to make the payment to be eligible for the discount.
- The third part, "n/30," indicates that the buyer has a total credit period of 30 days.
Based on these terms, if the buyer pays the accounts receivable within 10 days, they are eligible for a 2% discount. However, the full payment must be made within the credit period of 30 days to avoid any late payment penalties.
In the given scenario, where the buyer partially paid the accounts receivable on the 5th day and the full payment is due on the 10th day, the buyer would indeed be eligible for the 2% discount on the partial payment made within the discount period.
To calculate the amount of discount, you can multiply the partial payment by 2% (0.02). Subtract the discount amount from the partial payment to determine the remaining balance due on the 10th day for full payment.
It's important to note that any remaining balance after the 10th day would not be eligible for the 2% discount.
If you have access to a calculator or spreadsheet, you can easily calculate the discount amount using the formulas or functions provided to perform the calculations for you.