Gross Vs Net Method Of Accounting For Sales Discounts Youtube
For the sake of our example, let's assume that on April 1st, the company purchases another $2,000 worth of merchandise, on credit, with payment terms 2/10 net 30 A 2/10 net 30 payment term means that the buyer has 30 days to pay back its vendor, but can get a 2% discount if they pay within 10 days Now, Company XYZ records their purchases at2/10, n/30 means that customers will receive 2% discount if they settle accounts receivable within 10 days after the invoice date Customers have 30 days to settle the invoice, however, they will not receive discount if they pay after 10 th day of invoice date Payment term mean 2/10, n/30 or
