Question

The credit terms offered to a customer by a business firm are 2/10, n/30, which means that

A.

the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date.

B.

two sales returns can be made within 10 days of the invoice date and no returns thereafter.

C.

the customer must pay the bill within 10 days.

D.

the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.

Answer 1

D. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.

Step-by-step explanation:

The credit terms offered to a customer by a business firm are 2/10, n/30, which means that the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.

2/10 net 30, credit term can be defined as the trade credit in which clients can chose to either deduct a 2 percent discount for payment to a supplier within 10 days, or pay the full amount of their accounts payable in 30 days.