A Trade Credit Discount Such as 3/10 Net 40 Means

A trade credit discount such as 3/10 net 40 means

A) a 3 percent penalty is due after 40 days.
B) a 3 percent discount if payment is made within 10 days, otherwise, the total amount is due in 40 days.
C) a 3 percent discount for payment within 10 days, and a 3 percent penalty if payment is made after 40 days.
D) 10 percent discount for cash on delivery and a 3 percent discount for payment within 40 days.