Asked by Assata Dockins on May 27, 2024
Verified
Credit terms of 2/10,n/30 imply that the seller offers the purchaser a 2% cash discount if the amount is paid within 10 days of the invoice date.Otherwise,the full amount is due in 30 days.
Cash Discount
A reduction in the invoice price offered by sellers to buyers as an incentive for early payment.
Invoice Date
The date on which an invoice is issued, marking the beginning of the period in which payment is expected according to the terms of sale.
- Examine and determine the specifics of credit agreements and discounts.
Verified Answer
SC
Savannah ClaypoolMay 29, 2024
Final Answer :
True
Explanation :
The credit terms of 2/10, n/30 do imply that the seller offers the purchaser a 2% cash discount if the amount is paid within 10 days of the invoice date. If the purchaser does not take the discount, the full amount is due in 30 days.
Learning Objectives
- Examine and determine the specifics of credit agreements and discounts.