The net credit period for a company with terms of 3/10, net 60 is:
A)10 days
B)50 days
C)57 days
D)60 days
E)None of the above.

Question

Quizplus · Accepted Answer

The net credit period is the time from the end of the discount period to the final due date. With terms of 3/10, net 60, the discount period is 10 days, and the total credit period is 60 days. Therefore, the net credit period is 60 - 10 = 50 days.

The Net Credit Period for a Company with Terms of 3/10