1/15 net 30 date of invoice translates as ________.
A) a 1 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 1 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
C) a 1 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
D) a 1 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

Question

Quizplus · Accepted Answer

The term "1/15 net 30" means that a 1 percent cash discount may be taken if paid in 15 days, but if that discount is not taken, the full amount is due in 30 days after the invoice date. Option B correctly reflects this definition, making it the best choice. Option A is incorrect because it specifies "after the middle of the month" when the term doesn't actually include a reference to the middle of the month. Option C is incorrect because it specifies "after the end of the month" when the term only specifies "30 days" after either the invoice date or a specified date that is not necessarily the end of the month. Option D is incorrect because it presents a completely different discount structure.

1/15 Net 30 Date of Invoice Translates as ________