When goods are sold to a customer with credit terms of 2/15,n/30,the customer will:
A)receive a 15% discount if they pay within 2 days.
B)receive a 2% discount if they pay 15% of the amount due within 30 days.
C)receive a 15% discount if they pay within 30 days.
D)receive a 2% discount if they pay within 15 days.

Question

Quizplus · Accepted Answer

The credit terms,2/15,n/30 means that 2% of the invoice amount may be deducted if the invoice is paid in 15 days.Otherwise,the gross amount is due in 30 days.

When Goods Are Sold to a Customer with Credit Terms