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

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What does 2/10 mean, with respect to credit terms of 2/10, n/30? A discount of 10 percent will be allowed if the invoice

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Answer 1

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The answer is "C" : A discount of 2% will be allowed if the invoice is paid within 10 days of the invoice date.

2/10, n/30 generally used in case of credit sale meaning thereby 2% discount will be allowed if invoice amount is paid with in 10 days of credit sales otherwise the invoice is due in 30 days.

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