Which of the following statements is true about a purchase made with the credit terms of 2/10, n/30?

Question

Quizplus · Accepted Answer

The credit terms of 2/10, n/30 means that a 2% discount can be applied to the purchase if payment is made within 10 days (the discount period). If payment is not made within the discount period, the full amount is due within 30 days (the credit period) and the discount does not apply. Therefore, statement A is true. Statement B is incorrect because the discount only applies if payment is made within the discount period of 10 days. Statement C is also incorrect because the discount period is only 10 days, not 10-30 days. Statement D is incorrect because statement A is true.

Which of the Following Statements Is True About a Purchase