Vern CorpSold Merchandise to a Customer on Credit

Multiple Choice

Vern Corp.sold merchandise to a customer on credit.The invoice amount was $2,000; the invoice date was June 10; credit terms were 1/20, n/30.Which one of the following statements is true?

A) The customer must pay a $20 penalty if payment is made after July 9.
B) The customer should pay $2,000 if the invoice is paid on July 9.
C) The customer must pay $2,020 if payment is made after June 20.
D) The customer can take a $20 discount if the invoice is paid on June 30.