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 10 percent will be charged if invoice is paid after two days.

c. a discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date.

d. interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice?

Question

Maggie

Business

13 December, 18:58

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 10 percent will be charged if invoice is paid after two days.

c. a discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date.

d. interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice?

+1

Answers (1)

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Sarahi Walls · Answer 1

a. a discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.

So for example if the bill is $100 "2/10 net 30" and you pay within 10 days, you get a 20 cent discount and the balance is $9.80. If you pay in 30 days, the full 10 dollars is due.