Ms. Thomas has received an invoice from the manufacturer for which she distributes products. The invoice states credit terms of 3/10, net/30. Puzzled by this, she calls on you to explain. You indicate that the notation 3/10 means that
A) she may take a 30 percent discount if she pays the invoice within three days.
B) she must pay the entire amount in three days.
C) after three days, she must pay the new amount in ten days.
D) her line of credit is equivalent to three-tenths of the dollar value of her business.
E) she may take a 3 percent discount if she pays the invoice within ten days.

Question

Quizplus · Accepted Answer

The notation 3/10, net/30 means that the buyer can take a 3 percent discount on the invoice amount if the payment is made within 10 days; otherwise, the full invoice amount is due within 30 days.

Ms Thomas Has Received an Invoice from the Manufacturer for Which