If a company is given credit terms of 2/10, n/30, it should

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The credit terms of 2/10, n/30 means that the company can receive a 2% discount if payment is made within 10 days, otherwise the full amount is due within 30 days. The best choice is to pay within the discount period and recognize a savings of 2% on the total amount due. This will save the company money and also maintain a good relationship with the supplier by showing prompt payment. Holding off payment or withholding payment can damage the supplier relationship and potentially harm future business dealings. Not investing the cash during the waiting period would also result in missed opportunity cost.

If a Company Is Given Credit Terms of 2/10, N/30