1. Which one of the following statements is correct if you purchase an item with credit...

1. Which one of the following statements is correct if you purchase an item with credit terms of 2/10, net 30?

A.	If you pay within 2 days, you will receive a 10 percent discount.

B.	If you do not pay within 30 days, you will be charged interest at a 2.10 percent monthly rate.

C. If you pay within 30 days, you will receive a 2/10^thpercent discount.

D.	If you pay within 10 days, you will receive a 2 percent discount.

E.	You must pay the discounted amount within 30 days.

Expert Solution

Answer is D. If you pay within 10 days, you will receive a 2 percent discount.

Explanation:

The Purchase terms 2/10 net 30 means the discount at 2% will receive if paid within 10 days of invoice. however, the payment has to be made within 30 days of invoice.

jeff jeffy answered 2 years ago

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