[wausau1]

I am doing a problem and part of the problem says Kinzer Furniture paid $2,000 of May 4 invoice less the discount. What do they mean by less the discount?

[kcomissiong]

You would look at the terms on the account to figure out the discount. It is a reduction on the invoice total if the invoice is paid in X number is days. You will see terms like 1% 10 net 30 Days. It means that the invoice is due in 30 days, and there is a discount (or deduction) of 1% offered if the discount is paid in 10 days.

[wausau1]

So in the problem it say 2/15 n/30 so I would take 2% off the $2,000?

[kcomissiong]

Yes ma'am.

[wausau1]

Thanks.