What does "2/10, n/30" mean?

What does "2/10, n/30" mean?

• A. 2 percent discount if paid in full within 10 days.
• B. 2 percent discount if paid within 30 days.
• C. Net 2 percent due on 10 days.
• D. 2 percent service charge if not paid within 30 days.

Answer: (A)

These terms describe an early payment discount on an invoice. The portion "2/10" means you can take a 2% discount if you pay within 10 days of the invoice date. The "n/30" (net 30) means the full invoice amount is due by 30 days from the invoice date if you don’t take the discount. So, you have two choices: pay within 10 days and save 2%, or pay the full amount by day 30. For example, on a $1,000 invoice, paying within 10 days would cost $980; otherwise, you owe the full $1,000 by day 30.

These terms describe an early payment discount on an invoice. The portion "2/10" means you can take a 2% discount if you pay within 10 days of the invoice date. The "n/30" (net 30) means the full invoice amount is due by 30 days from the invoice date if you don’t take the discount. So, you have two choices: pay within 10 days and save 2%, or pay the full amount by day 30. For example, on a $1,000 invoice, paying within 10 days would cost $980; otherwise, you owe the full $1,000 by day 30.