Which statement is true about terms of trade credit of 2/10,net 30? A) A 10% cash discount is offered for payment before 30 days. B) A 2% cash discount can be taken for payment before the 10^th of the following month. C) A 10% cash discount can be taken if paid by the second day after invoicing. D) No cash discount is offered after the tenth day.

Question

Quizplus · Accepted Answer

The terms "2/10, net 30" mean a 2% cash discount is available if payment is made within 10 days; otherwise, the full invoice amount is due in 30 days.

Which Statement Is True About Terms of Trade Credit of 2/10,net