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Credit Terms of 3/10, N/30 Mean That A(n)

Question 9

Multiple Choice

Credit terms of 3/10, n/30 mean that a(n) :

A) ten percent cash discount may be taken if payment is made immediately; a three percent discount if paid within thirty days.
B) three percent cash discount may be taken if payment is made within ten days of the invoice date; otherwise the full amount is due within thirty days.
C) three percent cash discount may be taken if payment is made within ten days of the invoice date; otherwise the full amount is due at the end of the month.
D) additional amount equal to three percent of the invoice price must be paid if payment is not received within ten days; the account is overdue after thirty days.

Correct Answer: