Kendra is the new owner of a catering company. She got an invoice for a new walk-in refrigerator in the mail which contained the phrase "2/10, n/30." How would you explain this to her?
A)It means she can earn a ten percent discount if she pays within two days of receiving the bill; otherwise it is due at the end of the month.
B)It means she can earn a twenty percent discount if she pays within ten days of receiving the bill; otherwise it is due at the end of the month.
C)It means she can earn a two percent discount if she pays within ten days of the invoice date; otherwise the full amount is due in thirty days.
D)It means she can earn a thirty percent discount if she pays within two days of receiving the bill, or a ten percent discount if she pays by the end of the month.
E)It means she can earn a ten percent discount if she pays within two days of receiving the bill; she will pay a ten percent penalty if it is not paid within thirty days.

Question

Quizplus · Accepted Answer

"2/10, n/30" is a standard payment term used in invoices in the business world, where "2" means she can earn a two percent discount if she pays within ten days of the invoice date, "10" specifies the number of days within which the early payment discount can be earned, "n" stands for net, meaning the full amount is due in thirty days. Therefore, Kendra can get a two percent discount if she pays the invoice within ten days or pay the full amount within thirty days.

Kendra Is the New Owner of a Catering Company