The terms on an invoice are 3/10,n/25.This means that a:
A) discount of 10% is allowed if the invoice is paid in 3 days.
B) discount of 3% is allowed if the invoice is paid in 10 days.
C) discount of 25% is allowed if the invoice is paid in 10 days.
D) discount of 3% is allowed if the invoice is paid after 25 days.

Question

Quizplus · Accepted Answer

The terms 3/10, n/25 mean that a discount of 3% is allowed if the invoice is paid within 10 days; the "n/25" part typically means that the net (full) amount is due within 25 days, but no discount applies then.

The Terms on an Invoice Are 3/10,n/25