Under the Net Method an Invoice for $2,000 with Terms

question 123

True/False

Under the net method an invoice for $2,000 with terms of 2/10, n/30 should be recorded with a debit to Inventory and a credit to Accounts Payable of $2,000.
$2,000 x .98 = $1,960

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Definitions:

Investment Opportunity

A potential financial investment that may yield returns, including stocks, bonds, real estate, or starting a new business venture.

Return On Investment

A profitability ratio that calculates the return gained on an investment relative to the investment’s cost.

Investment Opportunity

Investment Opportunity is a term used to describe a business, project, or asset that has the potential to generate significant financial returns or profits.

Minimum Required Rate

The lowest acceptable rate of return on an investment, set by the investor.