Credit terms of 1/10, net 30 mean:
A)purchases made between the first and tenth day of the month must be paid by month end.
B)if the vendor is not paid within 30 days, 1% interest is charged for every 10 days thereafter.
C)the vendor will grant a discount of 10% for payment within 30 days.
D)the vendor will grant a 1% discount if paid within 10 days; otherwise the bill is due in full within 30 days.

Question

Quizplus · Accepted Answer

The credit terms of 1/10, net 30 mean that the vendor will grant a 1% discount if payment is made within 10 days, otherwise the bill is due in full within 30 days.

Credit Terms of 1/10, Net 30 Mean