The net credit period for a company with terms of 2/10,net 45 is:
A)10 days.
B)45 days.
C)35 days.
D)55 days.
E)40 days.

Question

Quizplus · Accepted Answer

The net credit period refers to the total time allowed for a customer to pay their invoice. In the terms "2/10, net 45," it means a 2% discount is offered if payment is made within 10 days; otherwise, the full amount is due in 45 days. Therefore, the net credit period is 45 days.

The Net Credit Period for a Company with Terms of 2/10,net