Which of the following correctly describes credit terms of 2/10,n/30?
A)A two percent discount for early payment is available if the invoice is paid before the tenth day of the month following the month the sale.
B)A two percent discount for early payment is available if the invoice is paid within ten days of the date of sale.
C)A ten percent discount for early payment is available if the invoice is paid within two days of the date of the invoice.
D)A two percent discount for early payment is available if the invoice is paid after the tenth day,but before the thirtieth day of the invoice date.

Question

Quizplus · Accepted Answer

Credit terms of 2/10, n/30 mean that a buyer can take a 2% discount on the invoice amount if the payment is made within 10 days of the invoice date. If the discount is not taken, the full invoice amount is due in 30 days.

Which of the Following Correctly Describes Credit Terms of 2/10,n/30