Asked by

Augusto Virgillito
on Nov 15, 2024

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The credit terms offered by a company are 2/10, n/30, which means that

A) the customer must pay the bill within 10 days.
B) the customer can deduct a 2% discount if the bill is paid between 10 days and 30 days from the invoice date.
C) the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.
D) two sales returns can be made within 10 days of the invoice date and no returns thereafter.

Credit Terms

Conditions under which credit is extended by a seller to a buyer, including the repayment period, discount for early payment, and the amount of late fees.

Invoice Date

The date indicated on an invoice, representing when it was issued, which marks the start of the period in which payment is expected to be made.

Sales Returns

Merchandise returned by customers for a refund or credit, reducing total sales revenue.

  • Interpret credit terms and their impact on payments and discounts.
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JL
Janet LopezNov 18, 2024
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