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In: Finance

The credit term 2/20, net 50 means that the buyers can take up 30 (50-20) days...

The credit term 2/20, net 50 means that the buyers can take up 30 (50-20) days to pay. But the firm allows buyers to take 2% discount if they pay in 20 days. Otherwise, they must pay the full amount within 30 days.

True

False

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Expert Solution

2/20, Net 50 means, 2% discount allowed in paid in 20 days. Full credit term is 50 [ 20 +30] Days with out discount.

Thus the stament is true.

jeff jeffy answered 3 years ago
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