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A Supplier Offers Credit Terms of 2/15,net 45

Question 58

Multiple Choice

A supplier offers credit terms of 2/15,net 45.This means that


A) a 2 percent surcharge will be added to any invoice not paid within 15 days.
B) all purchases must be paid in full within 30 days.
C) a monthly interest rate equal to 2/15ths of one percent will be added to any invoice not paid within 45 days.
D) a 2 percent discount can be taken if a purchase is paid within 15 days with the full amount due in 45 days.
E) 2 percent of the invoice must be paid within 15 days with the balance paid within 45 days.

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