The credit terms 2/10, n/30 are interpreted as:
A) 2% cash discount if the amount is paid within 10 days, or the balance due in 30 days.
B) 10% cash discount if the amount is paid within 2 days, or the balance due in 30 days.
C) 30% discount if paid within 2 days.
D) 30% discount if paid within 10 days.
E) 2% discount if paid within 30 days.

Question

Quizplus · Accepted Answer

The credit terms 2/10, n/30 mean that a 2% discount will be given if payment is made within 10 days, otherwise the full amount is due within 30 days. This is a common credit term used by vendors and suppliers to encourage prompt payment.

The Credit Terms 2/10, N/30 Are Interpreted As