Norton Corporation has purchased raw materials from a vendor and was offered credit terms of 2/10,n/30.Which of the following reflects these terms?
A)20% discount (2/10)if paid within 30 days
B)2% discount if paid within 10 days
C)10% discount if paid within 30 days and 2% after 30 days
D)2% discount if paid between 10 and 30 days.

Question

Quizplus · Accepted Answer

The credit terms of 2/10,n/30 mean that a 2% discount can be taken if payment is made within 10 days; otherwise, the full amount is due within 30 days. Therefore, the correct option is B. Options A, C, and D all have incorrect interpretations of the credit terms.

Norton Corporation Has Purchased Raw Materials from a Vendor and Was