Mike is the financial officer for a company that manufactures lawn furniture from recycled materials. Cash flow has become a problem for the company, so Mike has decided to offer a 5 percent discount to its middlemen who pay a bill within 10 days after its invoice date. All bills are due within 30 days of the invoice date. How should he write these terms?
A) 10/30, n/5
B) 5/30, n/10
C) 5/10, n/30
D) n/30, 5/10
E) n/10, 5/30

Question

Quizplus · Accepted Answer

The correct terms are "5/10, n/30" which means a 5 percent discount is offered if the bill is paid within 10 days; otherwise, the net (full) amount is due within 30 days.

Mike Is the Financial Officer for a Company That Manufactures