What does the credit term 2/10 N 30 mean?
2/10 Net 30 refers to the trade credit offered to a customer for the sale of goods or services. 2/10 net 30 means that if the amount due is paid within 10 days, the customer will enjoy a 2% discount. Otherwise, the amount is due in full within 30 days.
What do credit terms 1/10 N 30 mean?
A 1%/10 net 30 deal is when a 1% discount is offered for services or products as long as they are paid within 10 days of a 30-day payment agreement. The cost of credit is used as a percentage and occurs when the buyer does not take the reduced cost, thus paying the higher cost, reflecting the discount loss.
What does credit term n 30 mean?
A fairly standard credit term is net 30, which means the balance is due within 30 days of the invoice date – not when the transaction actually occurred.
When a company offers credit terms of 2/10 net 30?
What is 2/10 net 30? 2/10 net 30 is a trade credit extended to the buyer from the seller. A buyer will receive a 2% discount on the net amount if they pay the invoice in full within the first ten days of the invoice date. Otherwise, the full invoice amount is due in 30 days without a discount.
When goods are sold to a customer with credit terms of 2/15 N 30 the customer will?
15. When goods are sold to a customer with credit terms of 2/15, n/30, the customer will: A. receive a 15% discount if they pay within 2 days.
What does the sales discount 2/10 N 30 mean quizlet?
Explain what the credit terms of 2/10, n/30 mean. –The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date. -The full payment is due within a 30 day credit limit. discount period. Time period in which a cash discount is available and the buyer can make a reduced payment.
What does the term 3/10 n 30 mean?
So, when you see an invoice that states '3/10 net 30', it means that customers can receive a 3% discount if they pay within 10 days. Of course, this also applies to other discounts, so a 2% discount on payments made within 10 days would read as '2/10 net 30'.
What do the credit terms 2/15 N 60 mean?
Become a Study.com member to unlock this answer! Credit term of 2/15, net 60 signifies that the credit period for full payment is 60 days and the customer will get a trade discount of 2% on the full… See full answer below.
What is the meaning of the expression 2/10 net 30 in a purchase order?
2/10 net 30, defined as the trade credit in which clients can opt to either receive a 2 percent discount for payment to a vendor within 10 days or pay the full amount (net) of their accounts payable in 30 days, is extremely common in business to business sales.
What do the credit terms 2/15 N 30 mean quizlet?
What does a purchase discount of 2/15, n/30 mean? A discount of 2% will be given to the purchaser if the company pays the discounted price for the merchandise within 15 days. If not, then the company must pay the full price within 30 days.
What is the meaning of the term 2/10 net 30 quizlet?
– The notation "2% 10, net 30 "indicates that a 2% discount can be taken by the buyer only if payment is received in full within 10 days of the date of the invoice, and that full payment is expected within 30 days.
How should one interpret credit terms of 2/10 N 30 quizlet?
The credit terms 2/10, n/30 are interpreted as: 2% cash discount if the amount is paid within 10 days, or the balance due in 30 days.
What do the credit terms 2/15 net 30 mean?
2/10 net 30, defined as the trade credit in which clients can opt to either receive a 2 percent discount for payment to a vendor within 10 days or pay the full amount (net) of their accounts payable in 30 days, is extremely common in business to business sales.
What do the terms 2/10 N 30 mean quizlet?
Explain what the credit terms of 2/10, n/30 mean. –The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date. -The full payment is due within a 30 day credit limit. discount period. Time period in which a cash discount is available and the buyer can make a reduced payment.
Which of the following define the terms 2/10 N 30 quizlet?
The credit terms 2/10, n/30 are interpreted as: 2% cash discount if the amount is paid within 10 days, or the balance due in 30 days.
Which of the following terms defines 2/10 N 30 multiple choice questions?
Definition: 2 10, Net 30 is a cash discount term where customers have 30 days to pay for a purchase but can receive a two percent discount if the entire purchase paid in full within ten days.
Which of the following define the terms 1/20 N 45?
Which of the following define the terms 1/20, n/45? The buyer will receive a 1% discount if payment is made within 20 days; otherwise the full payment is due in 45 days.
What does the N mean in credit terms?
"Net" means that the full amount is due for payment. Thus, terms of "net 20" mean that full payment is due in 20 days. The term may be abbreviated to "n" instead of "net".
What do credit terms 3/20 n 60 mean?
The credit terms 3/20, n/60 means that the customer will be given a 3% discount if they pay their invoice in 20 days.
What does the credit term 3/10 n 60 mean?
3/10, n60 means that if the payment is made within 10 days of the sale then a discount of 3% can be taken on the list price of…
What do credit terms 3/15 n 60 mean?
The credit period, or number of days a buyer can pay without incurring a finance charge, is stated in NET days or n/days. Example: terms 3/15, n/60 means a buyer will receive a 3% cash discount if paid within 15 days of the invoice date, and the buyer has a maximum of 60 days to pay the entire debt amount.
When goods are sold to a customer with credit terms of 2/15 N 30 the customer will receive a?
When goods are sold to a customer with credit terms of 2/15, n/30, the customer will: A. receive a 15% discount if they pay within 2 days.