Coffski Inc.sold merchandise to a customer on credit.The invoice amount was $1,000,dated June 10.The credit terms were 1/10,n/30.What do these credit terms mean?

Question

Quizplus · Accepted Answer

The credit terms 1/10, n/30 mean that the customer can take a 1% discount if the invoice is paid within 10 days (by June 20), otherwise, the net (full) amount is due within 30 days (by July 10). Since option B is the only one that correctly interprets the "n/30" part of the terms, indicating the full amount is due by a date within the 30-day period, it is correct.