what do credit terms 3/20, n/20 mean ? how valuable to the customer the discount offered...
Homework Answers
• This credit terms 3/20, n/60 signifies that if a buyer is paying the complete sum of credit purchase within the 20 days of sale, then the buyer will get a 3% discount on the billed amount
• Otherwise, the full amount of the credit purchase is due within the 60 days from the sale, and the customer will not get any discount in that period.
This helps the customer to pay and clear his liability at a stipulated time and at a lower rate. This way benefit both the customer and the company because the money has a time value and money paid today is more valuable than money received after 2 months.
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what do credit terms 3/20, n/20 mean ? how valuable to the customer
the discount offered...
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