When goods are sold to a customer with credit terms of 2/15,n/30,the customer will:
A)receive a 15% discount if they pay within 2 days.
B)receive a 2% discount if they pay 15% of the amount due within 30 days.
C)receive a 15% discount if they pay within 30 days.
D)receive a 2% discount if they pay within 15 days.

Question

Quizplus · Accepted Answer

The credit terms of 2/15, n/30 mean that the customer is offered a 2% discount if they pay within 15 days (2/15) or they need to pay the full amount within 30 days (n/30). Therefore, the best choice would be to pay within 15 days to receive the 2% discount.

When Goods Are Sold to a Customer with Credit Terms