When goods are sold to a customer with credit terms of 2/15, n/30, the customer will receive which of the following?
A) A 15% discount if they pay within 2 days.
B) A 2% discount if they pay 15% of the amount due within 30 days.
C) A 15% discount if they pay within 30 days.
D) A 2% discount if they pay within 15 days.

Question

Quizplus · Accepted Answer

The terms 2/15, n/30 mean that the customer can take a 2% discount on the invoice amount if the payment is made within 15 days; otherwise, the net (full) amount is due within 30 days.

When Goods Are Sold to a Customer with Credit Terms