George's Car Repair Shop Buys Parts from a Local Parts

George's Car Repair Shop buys parts from a local parts distributor. The distributor delivers the parts promptly under terms stated on the invoice: 3/15 net 30. George has always paid the bill within 30 days and has never really worried about these invoice terms. Which of the following statements is true of this scenario?

A) He is smart to wait until the 30th day before making payment because this gives him the use of cash for the maximum possible amount of time.
B) These terms mean that the payment is due in 30 days, but that as long as he is not more than 15 days late, he can avoid the 3 percent late penalty. Thus, George could actually delay payment until the 45th day without incurring a penalty.
C) If he pays the bill within 15 days after receipt of the parts, then he will receive a 3 percent discount. If he does a lot of business with this firm, he will yield sizeable savings in the long­run.
D) He should not react to these payment terms as they are tactics used by distributors to get customers to pay early, with little or no benefit.