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The buyer received an invoice from the seller for merchandise with a list price of $400...

The buyer received an invoice from the seller for merchandise with a list price of $400 and credit terms of 2/10, n/60. What is the number 10 in the credit terms?

a

Credit period.

b

Discount period

c

Sales discount.

d

Cash discount allowed.
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Answer #1

SOLUTION:

n/60 is the credit period.

Number 10 is the discount period.

Therefore, option B is the correct.

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