Patel Industries recently filled an order from one of its customers, Oxmoor Gardens, a small garden supply store. Oxmoor's owner recently received an invoice from Patel for $1,278.64 with selling terms of "2/10, Net 30." Therefore, ________.
A)the selling terms indicate that Oxmoor must pay 2 percent of the invoice by the 10th day of the month with the balance due in 30 days
B)the selling terms are offering Oxmoor a 2 percent discount if the bill is paid within 10 days; otherwise the full amount of the invoice is due in 30 days
C)the selling terms indicate that the full amount of the invoice is due within 30 days and Oxmoor will be subject to a 2 percent finance charge for every 10 days that the bill is past due
D)the selling terms indicate that Oxmoor has not yet qualified for a quantity discount and must pay the full amount of the invoice within 30 days

Question

Quizplus · Accepted Answer

The selling terms "2/10, Net 30" mean that Oxmoor Gardens can receive a 2 percent discount on the invoice if they pay within 10 days (the discount period), but the full amount is due in 30 days regardless.

Patel Industries Recently Filled an Order from One of Its