The credit terms offered to a customer by a business firm were 2/10, n/30, which means
A)the customer must pay the bill within 10 days.
B)the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day 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 the customer can take a 2% discount if the invoice is paid within 10 days; otherwise, the net amount is due within 30 days.

The Credit Terms Offered to a Customer by a Business