On September 1,a Firm Grants Credit with Terms of 2/10

question 21

Multiple Choice

On September 1,a firm grants credit with terms of 2/10 net 45.The creditor:

• A)must pay a penalty of 2% when payment is made later than September 1st.
• B)must pay a penalty of 10% when payment is made later than 2 days after September 1st.
• C)receives a discount of 2% when payment is made at least 10 days before September 1st.
• D)receives a discount of 2% when payment is made before September 1^st and pays a penalty of 10% if payment is made after September 1st.
• E)receives a discount of 2% when payment is made within 10 days after the effective invoice date of September 1st.

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