The Terms '2/7' Appearing on an Invoice for the Sale/purchase

question 26

Multiple Choice

The terms '2/7' appearing on an invoice for the sale/purchase of inventory means that the buyer:

• A) will receive a 2% discount if paid within 7 days of the invoice date;
• B) will receive a 7% discount if paid within 2 days of the invoice date;
• C) has 7 days from the invoice date to pay or will be charged a 2% surcharge;
• D) has 2 days from the invoice date to pay or will be charged a 7% surcharge.