What Does "2/10" Mean,with Respect to "Credit Terms of 2/10,n/30

question 16

Multiple Choice

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

• A) A discount of 2 percent will be allowed if the invoice is paid within 10 days of the invoice date.
• B) Interest of 2 percent will be charged if the invoice is paid after 10 days from the date on the invoice.
• C) A discount of 10 percent will be allowed if the invoice is paid within two days of the invoice date.
• D) Interest of 10 percent will be charged if invoice is paid after two days.