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An Entity Offers Their Customers Discount Terms of 2/10 Net

Question 5

Multiple Choice

An entity offers their customers discount terms of 2/10 net 30 to encourage payment of invoices.What does this mean?


A) Take 2% off if paying within 10 days, or pay 100% before 30 days.
B) Take 2% off if paying within 30 days.
C) Pay 10% today and the balance in 30 days.
D) In two days' time, pay 10% and the balance in 30 days.

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