Cash discounts are usually specified by a term on the invoice such as 2/10, net 30, which means that the bill is due in full within 10 days, with 30 days remaining to claim a 2 percent discount.

Question

Quizplus · Accepted Answer

The term "2/10, net 30" means that the buyer can take a 2 percent discount on the invoice price if the payment is made within 10 days; otherwise, the full invoice price is due within 30 days.

Cash Discounts Are Usually Specified by a Term on the Invoice