Which of the following correctly describes credit terms of 2/10, n/30?
A)A two percent discount for early payment is available if the invoice is paid before the tenth day of the month following the month the sale.
B)A two percent discount for early payment is available within ten days of the date of sale.
C)A ten percent discount for early payment is available if the invoice is paid within two days of the date of the invoice.
D)A two percent discount for early payment is available if the invoice is paid after the tenth day, but before the thirtieth day of the invoice date.

Question

Quizplus · Accepted Answer

The credit terms 2/10, n/30 mean a 2% discount is available if the invoice is paid within 10 days of the date of sale, otherwise the net (full) amount is due within 30 days.

Which of the Following Correctly Describes Credit Terms of 2/10