Answer :
Sure, let's break down the credit terms of 2/10, n/30 step by step:
1. The full payment is due within a 30-day credit period.
- Yes, this is true. The "n/30" part of the term indicates that the net (full) amount of the invoice is due 30 days from the invoice date.
2. The full payment is due within 10 days.
- No, this is not true. While there is a term involving 10 days, it does not mean the full payment is due within that time period.
3. The buyer can take a discount of 10% if the invoice is paid within 30 days of the invoice date.
- No, this is not true. The discount is not 10%, and it is not valid for the entire 30-day period.
4. The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date.
- Yes, this is true. The "2/10" part of the term means the buyer is entitled to deduct 2% from the invoice amount if they make the payment within 10 days of the invoice date.
The correct options are:
- The full payment is due within a 30-day credit period.
- The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date.
Therefore, the complete and detailed solution to the question is:
The full payment is due within a 30-day credit period: True
The full payment is due within 10 days: False
The buyer can take a discount of 10% if the invoice is paid within 30 days of the invoice date: False
The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date: True
1. The full payment is due within a 30-day credit period.
- Yes, this is true. The "n/30" part of the term indicates that the net (full) amount of the invoice is due 30 days from the invoice date.
2. The full payment is due within 10 days.
- No, this is not true. While there is a term involving 10 days, it does not mean the full payment is due within that time period.
3. The buyer can take a discount of 10% if the invoice is paid within 30 days of the invoice date.
- No, this is not true. The discount is not 10%, and it is not valid for the entire 30-day period.
4. The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date.
- Yes, this is true. The "2/10" part of the term means the buyer is entitled to deduct 2% from the invoice amount if they make the payment within 10 days of the invoice date.
The correct options are:
- The full payment is due within a 30-day credit period.
- The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date.
Therefore, the complete and detailed solution to the question is:
The full payment is due within a 30-day credit period: True
The full payment is due within 10 days: False
The buyer can take a discount of 10% if the invoice is paid within 30 days of the invoice date: False
The buyer can deduct 2% of the invoice amount if payment is made within 10 days of the invoice date: True
