Jones Manufacturing sent Blue Company an invoice for equipment with a list price of $10,000. The invoice is dated July 27 with terms of 2/10, EOM. Blue Company is entitled to a 40% trade discount. If the invoice is paid on September 5, how much does Blue pay?

Question

Jones Manufacturing sent Blue Company an invoice for equipment with a list price of $10,000.  The invoice is dated July 27 with terms of 2/10, EOM.  Blue Company is entitled to a 40% trade discount.  If the invoice is paid on September 5, how much does Blue pay?

stephanie · Answer

$5,550