Under credit terms of 2/10, net 25, customers should:

A) Always pay on the 25^thday.
B) Take the 10 percent discount and pay immediately.
C) Take the discount and pay on the 2^ndday.
D) Either take the discount or pay on the 25^thday.
E) Both take the discount and pay on the 25^thday.

Question

Allie Franz · Accepted Answer

Final Answer : D, Explanation :  Credit terms of 2/10, net 25 mean that a customer can take a 2% discount if they pay within 10 days, or pay the full amount within 25 days. Therefore, they have the option to either take the discount by paying early or pay the full amount by the 25th day.

Under credit terms of 2/10, net 25, customers should:

A) Always pay on the 25^thday.
B) Take the 10 percent discount and pay immediately.
C) Take the discount and pay on the 2^ndday.
D) Either take the discount or pay on the 25^thday.
E) Both take the discount and pay on the 25^thday.

Definitions

Learning Objectives

Learning Objectives

Related questions

Under credit terms of 2/10, net 25, customers should:A) Always pay on the 25thday.B) Take the 10 percent discount and pay immediately.C) Take the discount and pay on the 2ndday.D) Either take the discount or pay on the 25thday.E) Both take the discount and pay on the 25thday.

Definitions

Learning Objectives

Learning Objectives

Related questions

Under credit terms of 2/10, net 25, customers should:

A) Always pay on the 25^thday.
B) Take the 10 percent discount and pay immediately.
C) Take the discount and pay on the 2^ndday.
D) Either take the discount or pay on the 25^thday.
E) Both take the discount and pay on the 25^thday.