The terms "3/20, net 60" mean that:
A) in effect, the buyer will pay a 27 percent interest rate if he takes 60 days to pay the invoice.
B) the buyer must make a 3 percent down payment--with the balance due in 20 to 60 days.
C) a 3 percent discount off the face value of the invoice is permitted if the bill is paid within 60 days--otherwise, the full face value is due within 20 days.
D) the invoice is dated March 20 and must be paid within 60 days.
E) None of the above is a true statement.

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The Answer of The terms "3/20, net 60" mean that:
A) in effect, the buyer will pay a 27 percent interest rate if he takes 60 days to pay the invoice.
B) the buyer must make a 3 percent down payment--with the balance due in 20 to 60 days.
C) a 3 percent discount off the face value of the invoice is permitted if the bill is paid within 60 days--otherwise, the full face value is due within 20 days.
D) the invoice is dated March 20 and must be paid within 60 days.
E) None of the above is a true statement.

The Terms "3/20, Net 60" Mean That