What is the meaning of the term 2/10 net 30?
A) If the invoice is paid within 10 days, a 2% discount can be taken. If the invoice is paid between 11 and 29 days, a 1% discount can be taken. After 30 days, the full invoice is due.
B) If the invoice is paid within 2 days, a 10% discount can be taken; otherwise the full invoice is due in 30 days.
C) If the invoice is paid within 2 days, a 10% discount can be taken; otherwise a 2% discount can be taken if the invoice is paid in 30 days.
D) If the invoice is paid within 10 days, a 2% discount can be taken; otherwise the full invoice is due in 30 days.

Question

Quizplus · Accepted Answer

The term "2/10 net 30" means that the buyer can take a 2% discount on the invoice amount if payment is made within 10 days; otherwise, the full amount is due within 30 days.

What Is the Meaning of the Term 2/10 Net 30