The credit terms offered to a customer by a business firm were 2/10, n/30, which means the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date. the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date. two sales returns can be made within 10 days of the invoice date and no returns thereafter. the customer must pay the bill within 10 days.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The credit terms offered to a customer by a business firm were 2/10, n/30, which means

the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date.

the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.

two sales returns can be made within 10 days of the invoice date and no returns thereafter.

the customer must pay the bill within 10 days.

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