1%/10 Net 30

    flowchart TD
	  A[Invoice Amount] --"1% Discount -->" B[Discounted Amount]
	  B --> C{Paid Within 10 Days?}
	  C -- Yes --> D[Pay Total: 990]
	  C -- No --> E[Pay Total: 1000]

## If you pay an invoice with a 1%/10 Net 30 term after 15 days, what amount would you pay for a $1,000 invoice? - [ ] $1,200 - [ ] $1,100 - [x] $1,000 - [ ] $990 > **Explanation:** If payment is made after 10 days but before 30 days, you must pay the full invoice amount of $1,000. ## True or False: The discount is 2% if paid within 20 days under the 1%/10 Net 30 rule. - [ ] True - [x] False > **Explanation:** The standard discount available is only 1% if paid within 10 days. There's no 2% discount for 20 days. ## What is the total payment amount if an invoice of $500 is paid within the discount period? - [ ] $495 - [ ] $500 - [x] $495 - [ ] $505 > **Explanation:** Paying within the discount period means applying the 1% discount. So, $500 - $5 = $495. ## If no payment is made within 10 days, when is the amount due? - [ ] 10 days - [ ] 20 days - [x] 30 days - [ ] 35 days > **Explanation:** The invoice is due within 30 days after issuing and must be paid in full if the discount isn’t taken. ## Which of the following is a benefit for vendors offering 1%/10 Net 30? - [ ] More paperwork - [ ] Delayed cash inflow - [x] Accelerated cash inflow - [ ] Higher pricing strategy > **Explanation:** Offering cash discounts helps vendors improve their cash flow through quicker payments. ## How many days do you have to take advantage of the 1% discount? - [ ] 15 days - [ ] 10 days - [ ] 30 days - [x] 10 days > **Explanation:** To avail of the 1% discount, you must pay within the first 10 days from the date of the invoice. ## What's the primary purpose of the 1%/10, Net 30 term? - [ ] To confuse buyers - [x] To encourage early payment - [ ] To increase sales prices - [ ] To delay transactions > **Explanation:** It's designed to incentivize prompt payment and help improve cash flow for businesses. ## If you pay your bill late, what do you lose? - [ ] A very good friend - [x] A discount - [ ] The phone number of the vendor - [ ] The ability to pay at all > **Explanation:** By paying late, you forfeit any eligible discounts, essentially paying a little extra for procrastination. ## When should you ideally pay an invoice with these terms? - [ ] On the 15th of the next month - [x] Within the first 10 days - [ ] Anytime before the deadline - [ ] Only when you're feeling generous > **Explanation:** Ideally, pay within the first 10 days to benefit from the money-saving 1% discount. ## If you always take the 1% discount on a large amount like $10,000, how much are you saving? - [ ] $10 - [ ] $50 - [x] $100 - [ ] $200 > **Explanation:** A 1% discount on $10,000 saves you a neat $100, which is a reason to celebrate paying early! 🎊