Final answer:
The terms of sale like '2/10 net 30' indicate that a customer can get a 2% discount if they pay within 10 days, with the full payment due within 30 days if the discount isn't taken. The correct option is B.
Step-by-step explanation:
The terms of sale for Skysong Crop merchandise, such as 2/10 net 30 or 2/10 net 60, are examples of trade credit terms commonly used by companies to incentivize early payment by customers. These terms are composed of two parts: the cash discount portion and the net payment portion. The cash discount, depicted in the structure as '2/10,' represents a 2% discount on the invoice amount if payment is made within 10 days. The 'net' portion of the terms, for example 'net 30' or 'net 60,' indicates the full invoice amount is due within 30 or 60 days, respectively, if the discount is not taken.
To further clarify, option 1, '2/10 net 60,' means the customer can take a 2% discount if they pay within 10 days, otherwise the full amount is due within 60 days. Similarly, option 2, '2/10 net 30,' implies that the customer can take a 2% discount for payment within 10 days, with the full invoice amount due within 30 days if the discount is not utilized. Options 3 and 4 follow the same structure with '2/15 net 60' and '2/15 net 30' respectively, offering a 2% discount if paid within 15 days, with the full payment due within 60 or 30 days.