Question

Credit terms of 2/15, n/45 indicate that which of the following sales discounts is being offered?

Options:
a. 45% discount
b. 2% discount
c. 15% discount
d. 30% discount

Answer 1

Credit terms of 2/15, n/45 offer a 2% discount if the invoice is paid within 15 days; afterwards, the full amount is due within 45 days without any discount.

Step-by-step explanation:

The credit terms of 2/15, n/45 indicate that a 2% discount is being offered if the invoice is paid within 15 days. After the 15-day period, the net amount (the full invoice price) is due within 45 days, with no discount available. Therefore, the correct option is b. 2% discount. The term 'n/45' signifies that the full, undiscounted amount is due if the invoice is not paid within the initial 15-day period.