The terms '2/7' appearing on an invoice for the sale/purchase of inventory means that the buyer:
A) will receive a 2% discount if paid within 7 days of the invoice date;
B) will receive a 7% discount if paid within 2 days of the invoice date;
C) has 7 days from the invoice date to pay or will be charged a 2% surcharge;
D) has 2 days from the invoice date to pay or will be charged a 7% surcharge.

Question

Quizplus · Accepted Answer

The terms '2/7' indicate that the buyer will receive a 2% discount if the invoice is paid within 7 days of the invoice date.

The Terms '2/7' Appearing on an Invoice for the Sale/purchase