A purchaser was offered terms of trade credit of 2/10, net 30, with an invoice date of January 1.Which one of the following acts threatens creditworthiness?
A)Taking the discount, paying on January 5.
B)Taking the discount, paying on January 10.
C)Ignoring the discount, paying on January 30.
D)Ignoring the discount, paying on February 9.

Question

Quizplus · Accepted Answer

Option D threatens creditworthiness because it involves paying after the net due date of 30 days, which was January 31. Paying on February 9 is late and can negatively affect the purchaser's creditworthiness.

A Purchaser Was Offered Terms of Trade Credit of 2/10