Seagar Corporation provides monofilament fishing line to its customers.Seagar gives its customers a three percent discount if the invoice payment is paid within 10 days of the billing date.If the discount is not taken then the balance must paid in full within 45 days of the billing date.Any unpaid balances over 45 days beyond the billing date will be assessed a five percent penalty every 30 days, beginning 46 days after the billing date.Seagar is said to sell on credit with terms of what?

Question

Quizplus · Accepted Answer

The terms for Seagar Corporation are 3/10, net 45. This means that a 3% discount is offered if the invoice is paid within 10 days of the billing date, and the balance must be paid in full within 45 days of the billing date. If the discount is not taken, then the full payment is due within 45 days. There is no mention of a net 30 day option, so options D and E are incorrect. Option A is incorrect because it includes a 30 day payment period in addition to the 45 day payment period, which is not mentioned. Option B is incorrect because it includes a 60 day payment period which is not mentioned. Therefore, the correct answer is C.

Seagar Corporation Provides Monofilament Fishing Line to Its Customers