Under credit terms of 1/5, net 15, customers should:
A) Always pay on the 15th day.
B) take the discount and pay immediately.
C) take the discount and pay on the day following the day of sale.
D) either take the discount or pay on the 15th day.
E) both take the discount and pay on the 15th day.

Question

Quizplus · Accepted Answer

Customers have the option to either take the discount (1%) and pay within 5 days of the sale date or pay the full amount within 15 days of the sale date. Therefore, the best choice is D, which states that customers can either take the discount or pay on the 15th day without penalty.

Under Credit Terms of 1/5, Net 15, Customers Should