Which statement is true about terms of trade credit of 2/10, net 30?
A)A 10% cash discount is offered for payment before 30 days
B)A 2% cash discount can be taken for payment before the 10th of the following month
C)A 10% cash discount can be taken if paid by the second day after invoicing
D)No cash discount is offered after the eleventh day

Question

Quizplus · Accepted Answer

The terms "2/10, net 30" mean a 2% discount is available if payment is made within 10 days; otherwise, the full invoice amount is due in 30 days. After the 10th day, no discount is available.

Which Statement Is True About Terms of Trade Credit of 2/10