Whenaselleroffersacashdiscountwithtermsof3/10,n/60,thismeans:
A)the buyer gets adiscount of 10 percent if the bill is paid within 3 days; otherwise theentire amount is due in 60 days.
B)payment is due in 10 days, or else there is a 3 percent late-paymentpenalty.
C)payment is due in 60 days, or else there is a 3percent late-paymentpenalty.
D)the buyer gets adiscount of 3 percent if the billis paid within 10 days; otherwise the entire amount is due in 60days.
E)if the buyer pays within 60 days, there is a 3 percent discount; beyond that is a10-day grace period before there is apenalty.

Question

Quizplus · Accepted Answer

The terms "3/10, n/60" mean that the buyer can take a 3% discount on the invoice amount if payment is made within 10 days; otherwise, the net (full) amount is due within 60 days.