Which of the following credit terms allows a discount of 3% if payment is made within 15 days from the date of the invoice; otherwise, the total amount of the invoice must be paid within 30 days from its date?

Question

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Option C specifies the credit terms that offer a discount of 3% if payment is made within 15 days, and if not, the total amount of the invoice must be paid within 30 days of its date. This is denoted as 3/15, n/30. The letter "n" in n/30 means "net," which signifies that the full payment is due within 30 days. Option A is incorrect as it lists EOM or "end of month" but does not provide a discount offered. Option B is incorrect as it lists EOM, which means the entire amount must be paid by the end of the month following the invoice date, and the terms suggest a discount, which is not offered. Option D is incorrect as it lists 15/3, which is an invalid credit term.

Which of the Following Credit Terms Allows a Discount of 3