If a firm's credit terms are 2/10 net 30 days, then customers settling their bills within 30 days of the beginning of the billing cycle will receive a 2 percent discount from the total invoice price.

Question

Quizplus · Accepted Answer

Customers must pay within 10 days of the beginning of the billing cycle to receive a 2 percent discount; after 10 days and up to 30 days, they must pay the full invoice price.

If a Firm's Credit Terms Are 2/10 Net 30 Days