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A Prompt Payment Term Such as "2/10:n/30" Means Which of the Following

Question 30

Multiple Choice

A prompt payment term such as "2/10:n/30" means which of the following?


A) The gross amount is due in ten days.
B) The customer can earn a 2% cash discount by paying within 10 days of the invoice date.
C) The customer can earn a 10% cash discount by paying within 2 days of the invoice date.
D) The customer can earn a 10% cash discount by paying within 30 days.

Correct Answer:

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