Question

Ten To One Gaming Corporation purchases poker chips from wholesalers and sells them to casinos in Las Vegas and Atlantic City. The company gets all of its merchandise from a supplier in Minnesota and always buys on credit with credit terms of 2/10, n/30. Which statement below best explains the credit terms of 2/10, n/30? The buyer will receive a 2% discount if they pay within ten days of the sale The buyer will receive a 10% discount if they pay within two days of the sale The buyer will receive a 10% discount if they pay within thirty days of the sale The buyer will receive a 2% discount if they pay within thirty days of the sale

Answer 1

Statement " The Buyer will receive a 2% discount if they pay within 10 days of the sale" best explain credit term 2/10.

For the purpose of explanation only

However, students should note that this statement is still incomplete as the statement would be completed 2/10 net 30 Definition. 2/10 net 30, defined as the trade credit in which clients can opt to either receive a 2 percent discount for payment to a vendor within 10 days or pay the full amount (net) of their accounts payable in 30 days, is extremely common in business to business sales