Kyle Is the Credit Manager for Timber Trails Inc

Kyle is the credit manager for Timber Trails Inc., a local landscaping company. Just recently, his supplier noted the terms on his invoice: 3/15 net 30. Which of the following statements best reflects the meaning of those terms?

A) Timber Trails will get a 3 percent cash discount if the balance owed to the supplier is paid within 15 days; otherwise the entire balance is due in 30 days.
B) The entire amount is due in 30 days, but the 3 percent late penalty will be imposed only if payment is more than 15 days late.
C) Timber Trails must pay 15 percent of the amount due in 3 days; the remaining 85 percent is due in 30 days.
D) Timber Trails has to pay the invoice within 30 days; late payment penalties are 3 percent if the bill is paid in less than 60 days, but they rise to 15 percent if payment is not made within 60 days.