An incentive for early payment, a discount, can be added. A 2 percent discount for payment within 10 days or full payment within 30 days is an example and is denoted as which of the following?
A) 2/10, net 30
B) 2/30, net 10
C) 10/30, net 2
D) 30/2, net 10
E) 10/2, net 30

Question

Quizplus · Accepted Answer

The notation for this type of discount is 2/10, net 30 which means that the buyer can take a 2 percent discount if they pay within 10 days or the full amount is due within 30 days.

An Incentive for Early Payment, a Discount, Can Be Added