The credit terms offered by a company are 2/10, n/30, which means that
A)the customer must pay the bill within 10 days.
B)the customer can deduct a 2% discount if the bill is paid between 10 days and 30 days from the invoice date.
C)the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.
D)two sales returns can be made within 10 days of the invoice date and no returns thereafter.

Question

Quizplus · Accepted Answer

The terms 2/10, n/30 mean that the customer can take a 2% discount on the invoice amount if the payment is made within 10 days of the invoice date; otherwise, the net (full) amount is due within 30 days.

The Credit Terms Offered by a Company Are 2/10, N/30