If a supplier is offering trade credit of 1/10 net 30,and a buyer chooses not to take the discount,when should they pay,assuming that they wish to stay on good terms with the supplier?
A)anytime before day 10
B)on day 10
C)on day 30
D)any time after day 30
E)any time between day 10 and day 30

Question

Quizplus · Accepted Answer

If the buyer chooses not to take the discount, they should pay on day 30 to stay on good terms with the supplier. This is the period of time outlined in the terms of the trade credit. Paying before day 10 or on day 10 would be taking the discount, and paying after day 30 could potentially harm the relationship with the supplier. Therefore, option C is the best choice.

If a Supplier Is Offering Trade Credit of 1/10 Net