BUISENESS MANAGEMENT
MERCHANDISING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Credit period
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Trade discount
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Discount period
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Cash discount allowed for early payment of the invoice
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Detailed explanation-1: -2/10 net 30 is a trade credit often offered by suppliers to buyers. It represents an agreement that the buyer will receive a 2% discount on the net invoice amount if they pay within 10 days. Otherwise, the full invoice amount is due within 30 days.
Detailed explanation-2: -What Is 1%/10 Net 30? The 1%/10 net 30 calculation is a way of providing cash discounts on purchases. It means that if the bill is paid within 10 days, there is a 1% discount. Otherwise, the total amount is due within 30 days.
Detailed explanation-3: -Credit terms of 2/10, n/60 means: the company will receive a 2 percent discount if the invoice is paid within 10 days. Otherwise, the full amount (without a discount) is due within 60 days.
Detailed explanation-4: -What is 2/10 net 30? 2/10 net 30 is a trade credit extended to the buyer from the seller. A buyer will receive a 2% discount on the net amount if they pay the invoice in full within the first ten days of the invoice date. Otherwise, the full invoice amount is due in 30 days without a discount.