How should one interpret credit terms of 2/15, n/45? Multiple Choice Two percent discount for early payment is available if the invoice is paid after the fifteenth day, but before the forty-fifth day of the invoice date. Two percent discount for early payment is available if the invoice is paid within fifteen days of the invoice date. Fifteen percent discount for early payment is available if the invoice is paid within two days of the date of the invoice. Two percent discount for early payment is available if the invoice is paid before the fifteenth day of the month following the month the sale.
Added by Salvador L.
Close
Step 1
Step 1: The credit terms 2/15, n/45 means that a 2% discount is available if the invoice is paid within 15 days of the invoice date. Show more…
Show all steps
Your feedback will help us improve your experience
Madhur L and 98 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
Madhur L.
What does ‘credit 3/15 net 45’ mean? a. 3% discount is granted if the account is settled within 15-45 days. If not, normal credit terms apply. b. 3 out of every 15 debtors will settle their accounts within 45 days. c. The discount in the range of 3% and 15% is granted for accounts settled within 45 days of the sale. d. 3% discount is granted if the account is settled within 15 days. If not, the account is payable within 45 days.
Rashmi S.
Jerelyn N.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD