1/15 net 30 date of invoice translates as
A) a one percent cash discount may be taken if paid in 15 days; if no cash discount is taken, the balance is due in 30 days after the middle of the month.
B) a one percent cash discount may be taken if paid in 15 days; if no cash discount is taken, the balance is due 30 days after the end of the month.
C) a one percent discount may be taken on 15 percent of the purchase if the account is paid within 30 days after the end of the month.
D) a one percent cash discount may be taken if paid in 15 days; if no cash discount is taken, the balance is due 30 days after the invoice date.

Question

Quizplus · Accepted Answer

The term 1/15 net 30 means that a one percent cash discount can be taken if payment is made within 15 days, and if not, the balance is due in full within 30 days after the date of the invoice. Therefore, choice D is the best answer as it accurately reflects the meaning of the term.

1/15 Net 30 Date of Invoice Translates as