In the credit terms of 2/10, n/30, what does the 2/10 mean?
A)The invoice was printed 2 days after the sale and is due in 10 days.
B)The invoice must be paid in 2 days or a 10% late charge will be assessed.
C)The goods shipped took 2 days to arrive and the charge was $10.00.
D)The purchaser may take a 2% discount if the invoice is paid in 10 days.

Question

Quizplus · Accepted Answer

The term 2/10 means that the purchaser can take a 2% discount on the invoice amount if it is paid within 10 days.

In the Credit Terms of 2/10, N/30, What Does the 2/10