A buyer who acquires merchandise under credit terms of 1/10, n/30 has 30 days after the invoice date to take advantage of the sales discount.

Question

Quizplus · Accepted Answer

The buyer has 10 days after the invoice date to take advantage of the sales discount, not 30 days. The terms 1/10, n/30 mean the buyer can take a 1% discount if the invoice is paid within 10 days; otherwise, the net (full) amount is due within 30 days.

A Buyer Who Acquires Merchandise Under Credit Terms of 1/10