What does "2/10" mean,with respect to "credit terms of 2/10,n/30"?
A) A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.
B) Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice.
C) A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date.
D) Interest of 10 percent will be charged if invoice is paid after two days.

Question

Quizplus · Accepted Answer

"2/10" indicates that a 2% discount will be offered if the invoice is paid within 10 days of the invoice date. The "n/30" portion of the credit terms indicates that the full amount of the invoice is due within 30 days, without any additional discounts or penalties.

What Does "2/10" Mean,with Respect to "Credit Terms of 2/10,n/30