A firm that offers payment terms of 2/10 net 30 gives its customers: a 2% discou

ID: 2789112 • Letter: A

Question

A firm that offers payment terms of 2/10 net 30 gives its customers:

a 2% discount if the bill is paid on or before Day 30, otherwise an additional cost of 10% is applicable.

a 10% discount if the bill is paid on or before Day 2, otherwise the entire bill is due by Day 30.

a 2% discount if the bill is paid on or before Day 10, otherwise the entire bill is due by Day 30.

a 20% discount if the bill is paid on or before Day 10, otherwise the entire bill is due by Day 30.

a 30% discount if the bill is paid on or before Day 10, otherwise the entire bill is due by Day 2 of the consecutive month.

a 2% discount if the bill is paid on or before Day 30, otherwise an additional cost of 10% is applicable.

a 10% discount if the bill is paid on or before Day 2, otherwise the entire bill is due by Day 30.

a 2% discount if the bill is paid on or before Day 10, otherwise the entire bill is due by Day 30.

a 20% discount if the bill is paid on or before Day 10, otherwise the entire bill is due by Day 30.

a 30% discount if the bill is paid on or before Day 10, otherwise the entire bill is due by Day 2 of the consecutive month.

Answer is C.

a 2% discount if the bill is paid on or before Day 10, otherwise the entire bill is due by Day 30.

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