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) any time before day 10
B) on day 10
C) on day 30
D) any time after day 30

Question

Quizplus · Accepted Answer

The term "1/10 net 30" means that the buyer can take a 1% discount if they pay within 10 days, or they can pay the full amount within 30 days. If the buyer wishes to stay on good terms with the supplier, they should pay by day 30 to avoid any late fees or potential damage to their credit or relationship with the supplier.

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