What Does "2/10" Mean, with Respect to "Credit Terms of 2/10

question 158

Multiple Choice

What does "2/10" mean, with respect to "credit terms of 2/10, n/30"?

• A)A discount of 2% will be allowed if invoice is paid within 10 days from the date of the invoice .
• B)An interest of 2% will be charged if invoice is paid after 10 days from the date of invoice.
• C)A discount of 10% will be allowed if invoice is paid within 2 days from the date of invoice.
• D)An interest of 10% will be charged if invoice is paid after 2 days.