Credit terms of a merchandising company are: 1/15,net 40.This means that the buyer can receive a discount of one percent,if the invoice is paid within 40 days of the invoice date.

Question

Quizplus · Accepted Answer

The terms 1/15, net 40 mean that the buyer can receive a 1% discount if the invoice is paid within 15 days, not 40 days. The full invoice amount is due in 40 days if the discount is not taken.

Credit Terms of a Merchandising Company Are: 1/15,net 40