Monumental Toys sold merchandise to a customer on credit. The invoice amount was $2,000; the invoice date was August 10; credit terms were 1/10, n/30. Which one of the following statements is true?
A.	The customer can take a $20 discount if the invoice is paid by August 20.
B.	The customer should pay $1,980 if the invoice is paid by September 9.
C.	The customer must pay a $20 penalty if payment is made after September 9.
D.	The customer must pay $2,020 if payment is made after August 20.
Answer:A
Monumental Toys sold merchandise to a customer on credit. The invoice amount was $2,000; the invoice date was August 10; credit terms were 1/10, n/30. Which one of the following statements is true?
A.	The customer can take a $20 discount if the invoice is paid by August 20. B.	The customer should pay $1,980 if the invoice is paid by September 9. C.	The customer must pay a $20 penalty if payment is made after September 9. D.	The customer must pay $2,020 if payment is made after August 20.