A company receiving payment of a $20,000 accounts receivable within 10 days with terms of 2/10, n/30, would record a sales discount of:
|
$2,000 |
|
|
$400 |
|
|
$200 |
|
|
There is no discount. |
Computation the value of sales discount is:
Value of sales discount = Value of accounts receivable * Percentage of discount on sales
= $20,000 * 0.02
= $400
Hence, the value of sales discount is $400, that is, the 2nd option is correct.
A company receiving payment of a $20,000 accounts receivable within 10 days with terms of 2/10,...