The terms of an invoice are 3/10,n/25.This means that a ________ of the invoice date.
A) discount of 10 percent is allowed if the invoice is paid within three days after the invoice date
B) discount of 3 percent is allowed if the invoice is paid within 10 days after the invoice date
C) discount of 25 percent is allowed if the invoice is paid within 10 days after the invoice date
D) discount of 3 percent is allowed if the invoice is paid after 25 days after the invoice date

Question

Quizplus · Accepted Answer

The terms 3/10, n/25 mean that a 3% discount is allowed if the invoice is paid within 10 days of the invoice date, and the full amount is due within 25 days of the invoice date (n indicates the number of days after the invoice date until the full amount is due, which is not specified in this case).

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